63% of Nigerians Demand Lower Interest Rates Ahead of CBN MPC Meeting

A fresh report by the Central Bank of Nigeria has revealed that a majority of Nigerians are calling for a reduction in interest rates as the Country battles rising inflation, high living costs, and slowing economic activities.

Global Mirror News gathered that 63.3 per cent of respondents in the Apex Bank’s April 2026 Inflation Expectations Survey want interest rates reduced ahead of the Monetary Policy Committee (MPC) meeting scheduled for May 19 and 20, 2026.

The report, released by the Statistics Department under the Economic Policy Directorate of the CBN, showed that while many Nigerians are struggling with inflation, they still believe lower borrowing costs could help businesses survive and stimulate economic growth.

According to the survey, 26 per cent of respondents preferred that rates remain unchanged, while 10.7 per cent supported another interest rate hike.

The development comes as the MPC prepares to take a critical decision on the Monetary Policy Rate (MPR), currently standing at 26.5 per cent, amid mounting concerns over inflation, exchange rate volatility, insecurity, transportation costs, and energy prices.

The report further showed that inflation perception worsened significantly in April 2026. About 67.2 per cent of respondents described inflation as “high,” compared to 56.4 per cent recorded in March.

CBN disclosed that the Inflation Perception Index rose to 40.5 points in April, indicating that Nigerians still view inflationary pressure as severe.

Households appeared more affected than businesses. The percentage of households that perceived inflation as high increased 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.

Micro businesses were hit hardest, with 69.9 per cent reporting severe inflation concerns, while medium-sized firms recorded the lowest at 63.2 per cent.

The survey also highlighted growing hardship among low-income earners. Households earning below N70,000 monthly recorded the highest inflation perception at 77.9 per cent, while respondents earning between N250,001 and N350,000 had the lowest inflation concerns at 46.6 per cent.

Rural communities also appeared more vulnerable, as 70.4 per cent of rural residents reported high inflation compared to 67.6 per cent in urban centres.

Respondents identified energy costs, transportation expenses, exchange rate instability, insecurity, and poor infrastructure as the major drivers of rising prices across the country.

Despite the harsh economic climate, many Nigerians remain hopeful that inflation may ease in the coming months. While 58.5 per cent expect inflation to rise next month, optimism about possible moderation increased over a six-month outlook.

The report also revealed that 67.9 per cent of respondents expect their spending to increase this month due to rising costs of goods and services.

Global Mirror News gathered that the survey sampled 3,587 respondents, including 1,923 firms and 1,664 households across Nigeria using data from the National Bureau of Statistics and the National Population Commission.

Meanwhile, economic experts have warned the MPC against excessive monetary tightening.

Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, cautioned that although inflationary pressure remains high, further interest rate hikes could damage Nigeria’s fragile economy.

Yusuf noted that rising political spending ahead of the 2027 elections, increased allocations to states, and election-related expenditures could worsen liquidity and inflationary pressure.

He argued that Nigeria’s inflation crisis is largely driven by structural challenges such as logistics bottlenecks, poor infrastructure, high transportation costs, and energy challenges rather than excessive consumer demand.

According to him, continuous tightening of monetary policy could discourage investment, weaken manufacturing competitiveness, increase borrowing costs, and slow down job creation.

Analysts at United Capital Plc also projected that the MPC may likely retain the current monetary policy stance during the upcoming meeting.

The firm stated that although inflation remains elevated, the present inflation surge is largely supply-driven, making further rate hikes less effective.

The analysts also expressed concern over weakening business activities after Nigeria’s Composite Purchasing Managers’ Index dropped into contraction territory at 49.4 points in April from 53.2 points in March.

According to the analysts, continued economic contraction could weaken investor confidence, reduce investments, and slow Gross Domestic Product growth if urgent interventions are not implemented.