A recent Household Expectations Survey conducted by the Central Bank of Nigeria (CBN) has found that 65.5 percent of Nigerian households support a reduction in lending rates as a measure to improve the economy.The survey, carried out in February 2025, gathered public opinions on key economic factors, including inflation, interest rates, exchange rates, and overall economic confidence over the next six months.Findings from the survey indicate that only 10.4 percent of respondents favor an increase in interest rates, while 12.5 percent believe rates should remain unchanged. Additionally, 11.6 percent expressed uncertainty regarding the future direction of interest rates.The results suggest that a majority of Nigerians perceive lower borrowing costs as beneficial for household financial stability, business growth, and overall economic performance.The survey also assessed the impact of inflation on public perception of economic strength. According to the findings, 68.1 percent of respondents believe that a rapid rise in prices would weaken the Nigerian economy, while 5.5 percent think it could strengthen it. Another 18.3 percent feel that rising prices would have no significant effect, and 8.1 percent remain uncertain about its impact.When presented with a choice between raising interest rates to control inflation or keeping rates low despite the risk of higher inflation, respondents were nearly divided. 44.1 percent preferred to reduce interest rates even if it led to inflationary pressures, while 42.1 percent supported increasing rates to curb inflation. The remaining 13.8 percent were undecided on the issue.The survey also analyzed consumer sentiment regarding economic conditions over different time frames. In February 2025, consumer confidence improved from -10.8 index points in the previous month to -5.8, indicating a reduction in negative economic outlook. Projections suggest that by May 2025, consumer sentiment will turn positive, reaching 4.0 index points. Further ahead, confidence is expected to strengthen by August 2025, with the index rising to 12.3 points, reflecting a more optimistic economic outlook.The CBN’s Household Expectations Survey provides insights into public perceptions of current economic conditions and expectations for future economic developments.CBN Survey: Majority of Nigerians Favor Lower Lending RatesA recent Household Expectations Survey conducted by the Central Bank of Nigeria (CBN) has found that 65.5 percent of Nigerian households support a reduction in lending rates as a measure to improve the economy.The survey, carried out in February 2025, gathered public opinions on key economic factors, including inflation, interest rates, exchange rates, and overall economic confidence over the next six months.Findings from the survey indicate that only 10.4 percent of respondents favor an increase in interest rates, while 12.5 percent believe rates should remain unchanged. Additionally, 11.6 percent expressed uncertainty regarding the future direction of interest rates.The results suggest that a majority of Nigerians perceive lower borrowing costs as beneficial for household financial stability, business growth, and overall economic performance.The survey also assessed the impact of inflation on public perception of economic strength. According to the findings, 68.1 percent of respondents believe that a rapid rise in prices would weaken the Nigerian economy, while 5.5 percent think it could strengthen it. Another 18.3 percent feel that rising prices would have no significant effect, and 8.1 percent remain uncertain about its impact.When presented with a choice between raising interest rates to control inflation or keeping rates low despite the risk of higher inflation, respondents were nearly divided. 44.1 percent preferred to reduce interest rates even if it led to inflationary pressures, while 42.1 percent supported increasing rates to curb inflation. The remaining 13.8 percent were undecided on the issue.The survey also analyzed consumer sentiment regarding economic conditions over different time frames. In February 2025, consumer confidence improved from -10.8 index points in the previous month to -5.8, indicating a reduction in negative economic outlook. Projections suggest that by May 2025, consumer sentiment will turn positive, reaching 4.0 index points. Further ahead, confidence is expected to strengthen by August 2025, with the index rising to 12.3 points, reflecting a more optimistic economic outlook.The CBN’s Household Expectations Survey provides insights into public perceptions of current economic conditions and expectations for future economic developments.
