As members of the Monetary Policy Committee of the Central Bank of Nigeria prepare for their 304th meeting on February 23 and 24, 2026, fresh survey results show that most Nigerians want lending rates reduced.
The January 2026 Household Expectations Survey, released by the apex bank ahead of the meeting, indicates that 65.0 per cent of respondents favour a cut in lending rates. In contrast, 12.2 per cent prefer an increase, while 15.1 per cent want rates left unchanged. About 7.7 per cent expressed no opinion.
The report stated that a majority of respondents prefer lower interest rates, signalling a tilt towards looser monetary conditions.
When asked whether rates should be raised to curb inflation or kept low even if inflation accelerates, 50.1 per cent opted for lower rates. Meanwhile, 41.8 per cent supported tightening to contain inflation, while 8.2 per cent had no view.
At its November 2025 meeting, the MPC retained the Monetary Policy Rate at 27.0 per cent, following a 50-basis-point reduction in September.
Despite the preference for cheaper credit, inflation concerns remain significant. About 66.6 per cent of respondents said the economy would be weak if prices rose faster than they are currently. Only 9.6 per cent believe the economy would strengthen under such circumstances, while 20.0 per cent said it would make no difference.
Consumer sentiment remained positive for the third consecutive month in January, although it moderated. The Overall Consumer Sentiment Index stood at 2.8 points, down from 4.8 points in December 2025.
The Economic Condition Index was 7.4 points, reflecting optimism about general economic prospects. The Family Income Sentiment Index rose to 9.1 points.
However, the Family Financial Situation Index remained negative at -8.2 points, highlighting continued strain on household finances.
Perceptions about price movements improved during the month. The Consumer Sentiment Index on price changes turned positive at 4.2 points, up from minus 1.4 points in December, suggesting expectations of easing price pressures.
Spending patterns show households are prioritising essentials. Food and other household items recorded the highest expenditure outlook for the current month at 62.7 index points. Education ranked second at 35.9 points, followed by transportation at 23.4 points.
Food spending is projected to remain elevated over the next six months at 63.6 points.
Demand for high-value items remains subdued. The Buying Intention Index for big-ticket purchases stood at 22.8 points for the current month, rising slightly to 25.0 points over the next three months and 28.5 points over the next six months.
All readings remain below the 50-point threshold, indicating continued caution in discretionary spending.
In personal statements released on the CBN’s website, five MPC members voted for a 50-basis-point cut at the November 2025 meeting.
They include Aku Odinkemelu, Aloysius Ordu, Bandele Amoo, Lamido Yuguda and Prof Murtala Sagagi.
The dissenting members proposed reducing the MPR from 27.0 per cent to 26.5 per cent and adjusting the asymmetric corridor, while retaining other prudential parameters.
However, the committee voted by majority to retain the benchmark rate at 27.0 per cent, reflecting continued caution over inflation risks.
