Majority of Nigerians urge CBN to cut interest rates as inflation and food prices soar

LEGIT NG

Two-thirds of Nigerian households want the Central Bank of Nigeria to reduce interest rates, as they believe it would help speed up economic recovery.

This is one of the findings contained in the new CBN Household Expectations Survey conducted in February 2025.

The survey covered public perception about key economic issues like interest rates, inflation, exchange rates and economic confidence over the next six months.

CBN holds Interest rates at 27.5%

Recall that the Central Bank of Nigeria finally decided to retain the Monetary Policy Rate (MPR), also known as the benchmark interest rate.

This decision followed their assessment of the rebased consumer price index (CPI) released by the National Bureau of Statistics (NBS).

This left the interest rates at 27.5%, and other rates were also retained by the committee.

Why Nigerians want CBN to reduce interest rates

The findings of the Household expectation survey showed that 10.4% support raising interest rates, 12.5% want CBN to hold the rates, while 11.6% were undecided.

The respondents noted that lower interest rates would translate to improved finances for both households and businesses and trigger economic growth and stability.

For inflation and its effect on purchasing power, 68.1% stated raising interest rates further would lead to a rapid increase in prices, reduce purchasing power and weaken the economy, while 18.3% thought increased prices would make no difference in the economy…