The latest survey conducted by the Central Bank of Nigeria (CBN) shows that a majority of Nigerian households, about 65.5%, believe that a decrease in lending rates would be beneficial for the economy. The survey, carried out in February 2025, delved into public opinions on various economic indicators such as inflation, interest rates, exchange rates, and economic confidence for the upcoming six months.
Among the findings, only 10.4% of the participants support an increase in interest rates, while 12.5% prefer them to stay unchanged. An additional 11.6% expressed uncertainty regarding the future direction of interest rates. The data reflects a widespread belief that lower borrowing costs could positively impact household finances, business expansion, and overall economic stability.
The survey also explored the correlation between inflation and public perceptions of economic well-being. A significant 68.1% of respondents felt that a rapid surge in prices would weaken the Nigerian economy, whereas merely 5.5% believed it would strengthen the economy. Concerns about the increasing cost of living and its implications on purchasing power were evident, with 18.3% noting that rising prices would have no effect, and 8.1% unsure about the consequences of inflation.
Regarding interest rates and inflation control, respondents were almost evenly split. 44.1% favored reducing interest rates, even if it meant higher inflation, while 42.1% leaned towards raising rates to combat inflation. A notable 13.8% remained undecided on the matter.
The survey also tracked consumer sentiment concerning the economy across different time frames. In February 2025, consumer confidence improved from -10.8 index points to -5.8, indicating a decrease in pessimism. Projections for May 2025 suggest a positive shift in consumer sentiment, reaching 4.0 index points, signaling a more optimistic view of the macroeconomic landscape. Looking further ahead to August 2025, consumer sentiment is expected to strengthen further, with the index rising to 12.3 points, reflecting growing confidence in economic recovery.
The CBN’s Household Expectations Survey offers valuable insights into how Nigerians perceive the current economic climate and their outlook for the future.