Survey: Nigerians Call for Lower Interest Rates as Inflation Expectations Remain High

Nume Ekeghe

A new report by the Central Bank of Nigeria (CBN) has revealed that most Nigerians believe interest rates are too high and are calling for a reduction in lending and savings rates, even as inflation expectations remain elevated in the months ahead.

The April 2025 Inflation Expectation Survey released by the CBN’s Statistics Department, showed that a significant number of respondents comprising households, businesses, and market watchers expressed frustration with prevailing borrowing costs, which they say are making it harder to meet personal and business financial needs.

“Most respondents believed that interest rates on savings accounts and lending rates were too high,” the report stated, reflecting a growing desire for more affordable access to credit amid widespread cost-of-living concerns.

Despite these sentiments, the survey also revealed that Nigerians remain cautious about the country’s inflation outlook, with the majority expecting prices to keep rising over the next six to twelve months. According to the report, “The overall median expectation of prices in the next 12 months remained unchanged in April 2025,” suggesting persistent anxiety over inflationary pressures.

Food, transportation, medical expenses, rent, and education were identified as the top factors expected to drive price increases. These essential categories have consistently featured as key inflationary drivers in recent months and continue to weigh heavily on household budgets. “Respondents attributed the likely increase in prices in the next 12 months to food, rent, medical expenses, education, and transport,” the survey added.

Notably, the proportion of respondents who anticipate higher prices in the short term has risen compared to the previous month. “The share of respondents expecting higher prices over the next 6 months increased relative to March 2025,” the report noted, underscoring continued uncertainty despite recent policy efforts.

Respondents expressed some optimism about the broader economy, particularly on the value of the naira and labour market conditions. “The respondents’ expectations on the naira exchange rate showed that the value of the naira would appreciate in the short term,” the report said. There were also expectations of improvements in unemployment and business conditions within the next year.