A recent Household Expectations Survey conducted by the Central Bank of Nigeria (CBN) has revealed that 65.5% of Nigerian households believe that a reduction in lending rates would be beneficial for the economy.
The CBN survey, which was carried out in February 2025, aimed to gauge public perception of key economic indicators, including inflation, interest rates, exchange rates, and economic confidence.
The survey’s findings provide valuable insights into the perceptions and expectations of Nigerian households. Some of the key findings include:
- – Lending Rates: Only 10.4% of respondents believe that interest rates should increase, while 12.5% prefer them to remain unchanged. Another 11.6% expressed uncertainty about the direction of interest rates.
– Inflation: 68.1% of respondents stated that a rapid increase in prices would weaken the Nigerian economy, while only 5.5% believe it would make the economy stronger.
– Economic Confidence: Consumer confidence improved from -10.8 index points in the previous month to -5.8, indicating a decline in pessimism. By May 2025, consumer sentiment is projected to turn positive, reaching 4.0 index points.
The survey’s findings suggest that most Nigerians believe lower borrowing costs would improve household finances, business growth, and economic stability. However, respondents were nearly split on whether to raise interest rates to control inflation or keep them low and allow inflation to rise.
The CBN’s Household Expectations Survey provides valuable insights into how Nigerians perceive the current economic environment and its future trajectory. According to economic experts, the survey’s findings highlight the need for policymakers to strike a balance between controlling inflation and promoting economic growth.
The survey’s findings have significant implications for monetary policy in Nigeria. The CBN may need to consider reducing interest rates to stimulate economic growth and improve household finances. However, this would require careful consideration of the potential impact on inflation.
The survey’s findings also have implications for fiscal policy in Nigeria. The government may need to consider increasing spending on key sectors such as infrastructure and education to stimulate economic growth. However, this would require careful consideration of the potential impact on the budget deficit.
The CBN’s Household Expectations Survey provides valuable insights into the perceptions and expectations of Nigerian households. The survey’s findings highlight the need for policymakers to strike a balance between controlling inflation and promoting economic growth. As the economy continues to evolve, it is essential to monitor these developments and address the challenges ahead.