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🇳🇬 Nigeria /Economy & Trade

61% of Nigerians demand interest rate cut ahead MPC

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

News Documents & data Context piece
  • A survey indicates that 61.1% of Nigerians desire a reduction in interest rates ahead of the Central Bank of Nigeria's Monetary Policy Committee meeting.
  • The Central Bank of Nigeria's June 2026 Inflation Expectations Survey Report shows a majority preference for lower rates, driven by businesses facing high borrowing costs.
  • Despite a moderation in official inflation, households and businesses continue to perceive inflation as high, though expectations are for it to moderate in July.

As the Central Bank of Nigeria's Monetary Policy Committee prepares for its upcoming meeting, a significant majority of Nigerians are calling for a reduction in interest rates. According to the CBN's June 2026 Inflation Expectations Survey Report, 61.1% of respondents want the benchmark interest rate lowered, while 27.8% favor maintaining the current rate, and 11.1% support an increase.

The majority of respondents want CBN to reduce interest rate, a perception driven by business respondents.

— CBN Inflation Expectations Survey ReportExplaining the primary driver behind the call for lower interest rates.

The current benchmark rate stands at 26.5%, a level reached after a series of increases in 2024 aimed at curbing inflation and stabilizing the foreign exchange market. The committee had previously retained the rate in May 2026 after a 50-basis-point reduction from 27%, continuing an easing cycle that began with a similar reduction in September 2025.

The survey reveals that the demand for lower interest rates is largely driven by businesses struggling with elevated borrowing costs. The report states that "the majority of respondents want CBN to reduce interest rate, a perception driven by business respondents." This indicates that high lending rates are impacting business operations and investment.

The Inflation Perception Index stood at 45.0 points in June 2026, suggesting that respondents perceive inflation as high. However, inflation expectation is expected to moderate at 32.2 index points in July 2026.

— CBN Inflation Expectations Survey ReportDetailing current inflation perceptions and future expectations.

Despite some moderation in Nigeria's official inflation figures, both households and businesses continue to perceive inflation as high. The Inflation Perception Index stood at 45 points in June, suggesting elevated price levels, although respondents expect this to decrease to 32.2 points in July. The report also noted that inflationary pressures remain more intense among households, with 76% perceiving inflation as high in June, compared to 67.3% of businesses.

Among households, the proportion of respondents who perceived inflation as high increased to 76 per cent in June from 72.8 per cent in May.

— CBN Inflation Expectations Survey ReportHighlighting the intensity of inflation perception among households.
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Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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