A survey by the Central Bank of Nigeria (CBN) has revealed that about 71.4 per cent of Nigerians want a reduction in interest rates amid growing concerns about inflation and economic hardship.
The CBN in its September 2024 Inflation Expectations Survey (IES) conducted between September 9 and 13, aimed to gauge the public’s perception of inflation and their expectations for future economic conditions.
The survey gathered opinions from businesses and households across the country.
The survey, which included 1,750 businesses and 1,665 households from 36 states and the Federal Capital Territory, indicated a significant preference for lower interest rates.
Details of the survey showed that only 12.5 per cent of respondents supported an increase in rates, while 16.1 per cent preferred the rates to remain unchanged.
“Most of the respondents (71.4 per cent) prefer the CBN to reduce the interest rate, while 12.5 per cent expect the interest rate to be raised. The remaining 16.1 per cent preferred the rates to remain unchanged,” the survey showed.
The IES report also highlighted that inflation remains a major concern for Nigerians. About 58.5 per cent of respondents described the current inflation rate as high, with both businesses and households reporting a negative outlook.
It further found that that energy costs, transportation, exchange rates, and insecurity were key drivers of inflation, contributing to the rising cost of living.
The survey also revealed a difference in inflation perception between businesses and households as businesses reported a slightly less negative view of the current inflation situation compared to households.
Small businesses, in particular, expressed the least negative perception, while households in urban areas had a lower inflation index compared to those in rural areas.
Lower-income households, particularly those earning less than N30,000 per month, were the most affected, with the highest inflation perception index.
The survey showed that Nigerians are cautiously optimistic about the future. Both businesses and households expect inflation to gradually ease over the next six months.
It, however, said businesses were more optimistic about a potential decline in inflation compared to households and also noted that a majority of respondents closely follow CBN communications on inflation and interest rates, with 62.1 per cent indicating that they monitor these updates.
Also, 61.8 per cent of respondents believe that the CBN is transparent in its communication efforts, though 50.9 per cent feel that CBN communications only somewhat influence inflation expectations.
