65% Nigerians demand lower interest rates as MPC meeting – Report
As policymakers prepare for a crucial monetary policy decision, new survey findings reveal a strong public tilt toward cheaper borrowing costs, even as inflation risks remain part of the economic conversation.
The January 2026 Household Expectations Survey released by the Central Bank of Nigeria shows that 65 per cent of respondents favour a reduction in lending rates.
The data comes days before the 304th meeting of the Monetary Policy Committee (MPC), scheduled for February 23 and 24, 2026.
The findings place the MPC in a delicate balancing position—caught between persistent inflation management objectives and growing public pressure for monetary easing.
According to the survey, only 12.2 per cent of respondents prefer higher interest rates, while 15.1 per cent want rates held steady. About 7.7 per cent expressed no opinion.
The sentiment highlights mounting household strain from elevated borrowing costs. The benchmark Monetary Policy Rate currently stands at 27.0 per cent, following a 50-basis-point reduction in September 2025 and a hold decision at the November meeting.
Notably, when respondents were asked to choose between raising rates to curb inflation or maintaining lower rates even if inflation accelerates, 50.1 per cent opted for keeping rates low. In contrast, 41.8 per cent supported tightening to contain price pressures.
The data reinforces the headline finding: 65% Nigerians demand lower interest rates as MPC meeting, underscoring the weight of consumer expectations ahead of the policy meeting.
Despite the preference for rate cuts, inflation anxiety has not disappeared. The survey indicates that 66.6 per cent of respondents believe the economy would weaken if prices rise faster than current levels. Only 9.6 per cent said such a scenario would strengthen the economy, while 20.0 per cent saw no material difference.
This apparent contradiction—support for lower rates alongside fear of inflation—suggests households are prioritising immediate credit relief over longer-term price stability concerns.
Economists interpret this as a reflection of ongoing financial pressure at the household level. High lending rates affect consumer loans, mortgage servicing, and business credit lines, amplifying cost-of-living challenges.
While public appetite for easing has intensified, broader consumer sentiment remains cautiously optimistic. The Overall Consumer Sentiment Index stood at 2.8 points in January, down from 4.8 points in December 2025, but still positive.
The Economic Condition Index came in at 7.4 points, reflecting sustained optimism about general macroeconomic prospects. Meanwhile, the Family Income Sentiment Index rose to 9.1 points, indicating improved expectations regarding earnings.
However, the Family Financial Situation Index remained negative at -8.2 points, highlighting continued strain on household balance sheets.
This divergence underscores why 65% Nigerians demand lower interest rates as MPC meeting – Report has gained traction in policy circles: optimism about the broader economy does not necessarily translate into comfort at the household level.
Expenditure outlook data from the survey reveals that households remain focused on necessities. Food and other household essentials recorded the highest expenditure index at 62.7 points for the current month, with expectations remaining elevated over the next six months at 63.6 points.
Education ranked second at 35.9 points, followed by transportation at 23.4 points. These figures indicate that consumption remains heavily skewed toward core obligations rather than discretionary spending.
Demand for high-value items remains subdued. The Buying Intention Index for major purchases stood at 22.8 points for the current month, rising modestly to 25.0 points over three months and 28.5 points over six months—well below the 50-point neutrality benchmark.
The subdued appetite for durable goods reinforces arguments that high borrowing costs may be constraining consumer expansion.
The renewed public demand for rate cuts comes against the backdrop of earlier divisions within the MPC. In November 2025, five members voted for a 50-basis-point reduction in the MPR, advocating a cut from 27.0 per cent to 26.5 per cent.
Among them were Aku Odinkemelu, Aloysius Ordu, Bandele Amoo, Lamido Yuguda, and Prof Murtala Sagagi—representing 41.7 per cent of the 12-member committee. They cited sustained disinflation trends, improved external buffers, and stronger growth conditions as justification for easing.
However, the majority opted to hold the rate steady, reflecting caution over residual inflation risks.
The upcoming session will test whether evolving household expectations—captured in the finding that 65% Nigerians demand lower interest rates as MPC meeting – Report—will influence policy direction.
Monetary authorities face a complex macroeconomic landscape. While inflation has shown signs of moderation, premature easing could risk reversing gains if underlying price pressures resurface.
Conversely, maintaining elevated rates may dampen credit growth, slow investment, and strain small and medium enterprises reliant on bank financing.
Financial analysts suggest the MPC may consider a cautious 25–50 basis point adjustment if disinflation trends remain intact and exchange rate stability persists. Others argue that holding rates steady would reinforce anti-inflation credibility.
Interest rate decisions carry implications beyond consumer lending. They affect government borrowing costs, bond yields, foreign portfolio inflows, and overall liquidity conditions.
A rate cut could stimulate domestic investment and ease debt servicing burdens for businesses. However, it may also reduce the interest rate differential that attracts foreign capital.
As 65% Nigerians demand lower interest rates as MPC convenes – Report gains attention, the central bank must weigh public sentiment against macroeconomic fundamentals.
The February MPC meeting is poised to be one of the most closely watched policy gatherings of the year. Markets will scrutinise both the decision and the accompanying communiqué for signals about the policy trajectory.
If the committee aligns with public sentiment and trims rates, it may signal confidence in the durability of disinflation. If it holds steady, the emphasis will likely remain on price stability as a prerequisite for sustainable growth.
Either way, the survey underscores a growing disconnect between household financial stress and cautious policy calibration—a dynamic that will shape Nigeria’s monetary discourse in 2026.
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