Survey: Nigerians Call for Lower Interest Rates as Inflation Expectations Remain High

Survey: Nigerians Call for Lower Interest Rates as Inflation Expectations Remain High

The Central Bank of Nigeria's April 2025 Inflation Expectation Survey reveals widespread public concern over high interest rates, with many Nigerians calling for a reduction in lending and savings rates due to the financial strain they impose. 

Households, businesses, and market watchers expressed that current borrowing costs are hindering their ability to manage expenses, even as inflation expectations remain high. The majority of respondents foresee continued price increases over the next 6 to 12 months, driven mainly by rising costs in food, transportation, medical care, rent, and education. 

These essentials have consistently been inflationary pressure points, heavily impacting household budgets.

The survey also shows an increase in the number of people expecting prices to rise in the short term compared to the previous month, reflecting persistent economic uncertainty. Despite inflation concerns, there is cautious optimism regarding improvements in the economy, including a potential appreciation of the naira and better employment prospects in the coming year.