Majority of Nigerians Favor Interest Rate Cuts Amid Inflation

A survey conducted ahead of the Central Bank of Nigeria's Monetary Policy Committee (MPC) meeting scheduled for May 19-20, 2026, reveals that 63.3% of Nigerians prefer a reduction in interest rates. This comes amid persistent inflationary pressures and rising living costs, with 26.0% wanting rates to remain unchanged and 10.7% supporting further tightening.

The inflation expectation index stood at 40.5 points in April 2026, indicating a perception of high inflation among respondents, which increased from 56.4% in March to 67.2% in April. Households earning below N70,000 monthly reported the highest perception of inflation at 77.9%.

The survey covered 3,587 respondents, including 1,923 firms and 1,664 households, and highlighted that energy costs, transport, and exchange rate volatility are major drivers of inflationary pressures. Despite expectations of a gradual decline in inflation over the next six months, 67.9% of respondents anticipate an increase in expenditure levels.