As the Central Bank of Nigeria (CBN) prepares for its 304th Monetary Policy Committee (MPC) meeting scheduled for February 23–24, fresh survey data reveal mounting public pressure for lower lending rates, even as inflation concerns persist.
The January 2026 Household Expectations Survey shows that 65 per cent of Nigerians favour a reduction in lending rates, while 12 per cent prefer an increase and 15 per cent want rates maintained at current levels. The findings highlight that affordable credit remains a pressing concern for households navigating financial strain.
Currently, the Monetary Policy Rate (MPR) stands at 27 per cent, following a 50-basis-point cut in September 2025 and a hold in November. That cautious stance reflected inflation risks despite gradual disinflation and stronger external buffers.
The survey also explored public attitudes toward the trade-off between curbing inflation and promoting growth. Slightly more than half of respondents indicated a preference for lower rates even if it meant higher inflation, while 42 per cent supported tighter monetary policy to control price pressures. Yet, two-thirds of households warned that unchecked inflation would weaken the economy, underscoring the delicate balance Nigerians perceive between borrowing costs and price stability.
Consumer sentiment remains positive but slowed in January. The Overall Consumer Sentiment Index dropped to 2.8 points from 4.8 in December. Optimism about general economic prospects persists, with the Economic Condition Index at 7.4 points and expectations for family income rising to 9.1 points. However, the Family Financial Situation Index stayed negative at -8.2 points, reflecting ongoing household financial strain.
Spending patterns show caution, with households prioritising essentials such as food and basic items. Education and transportation ranked next, while demand for high-value goods remained subdued, indicating careful management of discretionary spending.
At the November 2025 MPC meeting, five of the 12 members voted for a 50-basis-point reduction in the MPR, citing improved growth conditions and declining inflation, but the majority opted to hold rates steady. The February meeting now presents another delicate balancing act: reducing rates could ease borrowing costs and stimulate economic activity, but it risks complicating inflation management. Holding rates may preserve price stability but keep household finances under pressure.
As the MPC convenes, the decision will not only adjust Nigeria’s benchmark rate but also signal how the central bank interprets public sentiment in the face of persistent economic challenges. The outcome will carry significant implications for borrowing, spending, and broader economic growth in the months ahead.
By Juliet Ezeh, Abuja
