65% Of Nigerians Want CBN To Reduce Interest Rates Amid High Inflation, Food Prices

• The CBN Household Expectations Survey shows that more than two-thirds of Nigerians want the CBN to reduce interest rates
• Since 2024, the CBN Monetary Policy Committee has raised interest rates severally to 27.5%
• However, the committee finally decided to hold rates last month after considering the current inflation figures

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

Two-thirds of Nigerian households want the Central Bank of Nigeria to reduce interest rates, as they believe it would help speed up economic recovery.

This is one of the findings contained in the new CBN Household Expectations Survey conducted in February 2025.

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The survey covered public perception about key economic issues like interest rates, inflation, exchange rates and economic confidence over the next six months.

CBN holds Interest rates at 27.5%

Recall that the Central Bank of Nigeria finally decided to retain the Monetary Policy Rate (MPR), also known as the benchmark interest rate.

This decision followed their assessment of the rebased consumer price index (CPI) released by the National Bureau of Statistics (NBS).

This left the interest rates at 27.5%, and other rates were also retained by the committee.

Why Nigerians want CBN to reduce interest rates

The findings of the Household expectation survey showed that 10.4% support raising interest rates, 12.5% want CBN to hold the rates, while 11.6% were undecided.

The respondents noted that lower interest rates would translate to improved finances for both households and businesses and trigger economic growth and stability.

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For inflation and its effect on purchasing power, 68.1% stated raising interest rates further would lead to a rapid increase in prices, reduce purchasing power and weaken the economy, while 18.3% thought increased prices would make no difference in the economy.

Another 8.1% were undecided, while about 5.5% believed that the rising cost of living could make the economy stronger.

Recall that the recent rebasing of the CPI led to a crash in headline inflation from 34.8% to 24.48%, and food inflation from 39.4% to 26%.

Nigerians remain optimistic about economic recovery

The survey revealed improving consumer sentiments throughout the period, with consumer confidence moving from -10.8 index points in January to 5.8% in February, and finally up to 4.0 index points in May 2025.

It is even expected to strengthen further to 12.3 index points by August, showing that Nigerians remain optimistic that there will be economic recovery in 2025.

Experts react to CBN's increased interest rates

In related news, the CBN's last decision to increase interest rates to 27.5% in November 2024 sparked a lot of reactions.

Dr. Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, raised concerns over the declining GDP growth, especially in key sectors.

He noted that only financial services appeared to be growing, while sectors like agriculture, manufacturing and real estate that affect daily living, were struggling.