A recent survey, conducted by the Central Bank of Nigeria , titled the Household Expectations Survey, has disclosed that 65.5 percent of Nigerian households are of the opinion that a reduction in lending rates would be most beneficial for the nation’s economy.
The survey, carried out during February of 2025, provides insights into the public’s perception of critical economic indicators, encompassing inflation, interest rates, exchange rates, and economic confidence over the forthcoming six months.
As per the survey’s findings, a mere 10.4 percent of respondents believe that interest rates should be increased, while 12.5 percent express a preference for maintaining the current interest rate levels.
An additional 11.6 percent indicated a state of uncertainty regarding the direction of interest rates.
The data suggests that a significant portion of the Nigerian populace believes that diminished borrowing costs would contribute to the improvement of household financial stability, business expansion, and overall economic steadiness.
The report also examined the impact of inflation on public perception of economic strength. 68.1 percent of respondents asserted that a rapid escalation in prices would weaken the Nigerian economy, whereas only 5.5 percent believe it would bolster the economy.
18.3 percent expressed the view that rising prices would have no discernible impact, and 8.1 percent remained uncertain about the effects of inflation. This underscores a considerable level of concern regarding the escalating cost of living and its consequential impact on purchasing power.
When presented with the choice between elevating interest rates to manage inflation or sustaining low interest rates while allowing inflation to rise, the respondents were nearly evenly divided. 44.1 percent preferred to reduce interest rates, even if it resulted in heightened inflation, while 42.1 percent favored raising rates to mitigate inflation. 13.8 percent remained undecided.
The report additionally assessed consumer sentiment regarding the economy across varying timeframes. In February of 2025, consumer confidence demonstrated an improvement, progressing from -10.8 index points in the preceding month to -5.8, indicating a reduction in pessimism.
By May of 2025, consumer sentiment is projected to transition into positive territory, attaining 4.0 index points, reflecting a more optimistic perspective on the macroeconomic landscape. Looking further ahead, consumer sentiment is anticipated to strengthen in August of 2025, with the index ascending to 12.3 points, suggesting a growing confidence in economic recovery.
The CBN’s Household Expectations Survey offers a depiction of the Nigerian populace’s perception of the prevailing economic climate and its projected trajectory.
