The Central Bank of Nigeria (CBN) says a majority of Nigerians are in favour of a reduction in interest rates ahead of the Monetary Policy Committee (MPC) meeting scheduled for May 19–20, 2026.
This was revealed in the apex bank’s April 2026 Inflation Expectations Survey, published by its Statistics Department under the Economic Policy Directorate.
According to the report, 63.3% of respondents expressed a preference for lower interest rates, reflecting strong public demand for cheaper borrowing costs despite ongoing inflationary pressures in the economy. Meanwhile, 26.0% preferred rates to remain unchanged, while 10.7% supported a further increase.
The CBN also noted high public engagement with its communications at 92.1%, and a perception of transparency at 93.3%.
However, inflation sentiment worsened during the period under review. About 67.2% of respondents described inflation as high in April 2026, up from 56.4% in March. The Inflation Perception Index stood at 40.5 points, indicating sustained concern over price levels.
Households appeared more affected than businesses. Inflation perception among households rose to 68.8%, while businesses recorded 65.9%. Micro businesses reported the highest inflation perception at 69.9%, compared to medium firms at 63.2%.
Lower-income earners were most impacted, with 77.9% of respondents earning below ₦70,000 monthly describing inflation as high. Rural respondents also reported slightly higher inflation pressure (70.4%) compared to urban respondents (67.6%).
Key drivers of inflation identified in the survey include energy costs, transportation, exchange rate volatility, insecurity, and weak infrastructure.
Despite current pressures, respondents showed cautious optimism, with a gradual increase in those expecting inflation to ease over the next six months.
Economist and Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, warned that while inflation and liquidity pressures ahead of the 2027 elections may push the MPC toward maintaining a tight stance, further tightening could hurt economic growth.
He argued that Nigeria’s inflation is largely supply-driven, making monetary tightening less effective in addressing underlying structural challenges such as energy and logistics costs.
Analysts at United Capital Plc also projected that the MPC may retain the current monetary stance at its meeting, noting that global oil price pressures and domestic output contraction are complicating policy decisions.
The firm warned that Nigeria’s Composite Purchasing Managers’ Index slipping to 49.4 points signals weakening business activity, adding that sustained contraction could further dampen investment and growth.
Overall, the analysts expect the MPC to maintain the Monetary Policy Rate at 26.5%, alongside unchanged liquidity and cash reserve ratios, as policymakers continue balancing inflation control with the need to support economic recovery.
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