As the Central Bank of Nigeria (CBN) prepares for its 301st Monetary Policy Committee (MPC) meeting, a recent survey has revealed that most Nigerians are calling for a reduction in interest rates.
This is according to CBN’s Household Expectations Survey report for June 2025.
According to the report, 62.4% of respondents expressed a preference for a reduction in interest rates, signaling widespread concern over the cost of borrowing and the impact of tight monetary policy on households and businesses.
When asked to choose between keeping interest rates high to curb inflation and lowering them to ease access to credit, 45% of respondents favored a reduction in interest rates, while 40.3% supported an increase to help bring inflation under control. The remaining respondents were either neutral or uncertain.
The survey also revealed widespread pessimism about the trajectory of the Nigerian economy if inflation continues to rise unchecked.
According to the report, “A significant majority of surveyed households believe that the Nigerian economy will weaken if prices were to rise faster than the current rate.”
More insights
The report shows that in June 2025, the overall consumer sentiment stood at -13.2 index points, reflecting weak pessimism among consumers.
The Economic Conditions Index improved to -11.6 index points from -12.6 index points in May 2025.
The Family Financial Situation Index stood at -22.3 index points in June 2025, which is a more pessimistic level than in May 2025.
The Family Income sentiment recorded -5.9 index points in June 2025, which is about the same level as -5.7 points recorded in May.
What you should know
The CBN announced that the 301st meeting of the Monetary Policy Committee (MPC), the country’s apex decision-making body on interest rate policy, will be held on Monday, July 21, and Tuesday, July 22, 2025, at its headquarters in Abuja.
According to a notice, the meeting will commence at 10:00 a.m. on July 21 in the MPC Meeting Room at CBN headquarters. The two-day deliberation will culminate in an official announcement by CBN Governor Olayemi Cardoso, who will disclose the committee’s policy decisions on Tuesday, July 22.
At the 300th MPC meeting held in May 2025, the CBN opted to maintain a conservative stance, keeping the Monetary Policy Rate (MPR) unchanged at 27.5%.
The decision underlines the Bank’s commitment to balancing price stability with gradual economic recovery.
Other key resolutions from the May meeting included:
- Asymmetric Corridor: Retained at +500/-100 basis points around the MPR
- Cash Reserve Ratio (CRR): Held at 50% for Deposit Money Banks and 16% for Merchant Banks
- Liquidity Ratio: Maintained at 30%
The vote was unanimous, with all 12 MPC members supporting the retention of existing rates, citing the need to monitor the effectiveness of current policies before making further adjustments.
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