- 67.9 per cent of respondents expect their expenditure to increase in the near term
- It further stated that the Inflation Perception Index stood at 40.5 points
- Yusuf also cautioned that higher borrowing costs could weaken investment
The Central Bank of Nigeria (CBN) has revealed that a majority of Nigerians are in favour of a reduction in interest rates ahead of the Monetary Policy Committee (MPC) meeting scheduled for May 19–20, 2026.
Eko Hot Blog gathered that this was contained in the bank’s April 2026 Inflation Expectations Survey Report released by its Statistics Department under the Economic Policy Directorate and published on its website.
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According to the report, 63.3 per cent of respondents supported a cut in interest rates, despite ongoing inflationary pressures in the economy. It added that 26.0 per cent preferred that rates be maintained at current levels, while 10.7 per cent called for a further increase.
The CBN noted strong public awareness of its communication, with 92.1 per cent of respondents engaging with its messages, while 93.3 per cent expressed confidence in its transparency.
The survey also showed that inflation perception worsened in April 2026, as 67.2 per cent of respondents described inflation as high, compared to 56.4 per cent in March.
It further stated that the Inflation Perception Index stood at 40.5 points, indicating that Nigerians still view price levels as elevated.
Household and business responses revealed rising concern over inflation, with households reporting an increase from 61.7 per cent in March to 68.8 per cent in April, while businesses rose from 51.9 per cent to 65.9 per cent within the same period.
Micro businesses recorded the highest inflation perception at 69.9 per cent, while medium-sized firms reported the lowest at 63.2 per cent.
Inflation concerns were also more severe among lower-income earners, with 77.9 per cent of those earning below N70,000 monthly reporting high inflation.
Rural residents were slightly more affected than urban dwellers, with 70.4 per cent and 67.6 per cent respectively reporting high inflation pressure.
Respondents identified energy costs, transportation, exchange rate volatility, insecurity, and weak infrastructure as the major drivers of rising prices.
Despite current pressures, the report showed mixed expectations, as more than half of respondents still expect inflation to rise in the coming months, though a growing share believe it may ease within six months.
On spending outlook, 67.9 per cent of respondents expect their expenditure to increase in the near term, with businesses slightly higher than households.
Economist and Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, said the MPC is likely to maintain a tight monetary stance due to inflation and liquidity pressures ahead of the 2027 elections, but warned that further tightening could slow economic growth.
He argued that inflation in Nigeria is largely driven by structural challenges such as energy costs, transport, logistics, and infrastructure deficits, rather than excess demand, making interest rate hikes less effective.
Yusuf also cautioned that higher borrowing costs could weaken investment, manufacturing, and small business growth.
Analysts at United Capital Plc also projected that the MPC would likely retain its current monetary policy stance, citing persistent inflationary risks alongside weak economic growth indicators.
They noted that global tensions, including the US-Iran crisis, have added to inflationary pressures through higher oil and logistics costs.
The analysts further pointed to a decline in Nigeria’s Composite Purchasing Managers’ Index to 49.4 points in April, indicating weakening business activity.
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