An overwhelming majority of Nigerian households have expressed a strong demand for lower interest rates, with 61.5% of respondents indicating they want rates to fall by October 2025.
The findings reflect growing concerns among households about the rising cost of borrowing and the overall tightening credit conditions in the economy.
This is according to the latest Household Expectations Survey released by the Central Bank of Nigeria (CBN).
“Majority of respondents continue to prefer lower interest rates, with 61.5% indicating a desire for rates to fall (decline) in October 2025,” the report said.
According to the survey, 42.5% of Nigerians specifically indicated they want interest rates reduced—even if such reductions could fuel inflationary pressures.
This signals a widespread preference for more affordable credit to support household spending, business activities, and general financial stability.
“In October 2025, 42.5% of respondents indicated a preference for a decrease in interest rates without minding the inflationary effect,” the CBN survey revealed.
Households raise concerns over increasing interest on bank loans
The report also highlights that a larger percentage of respondents observed an increase in interest rates on bank loans over the past three months.
This trend aligns with monetary policy tightening measures implemented to curb inflation, but it has also made access to credit more challenging for individuals and small businesses.
Analysts say the rising interest rate environment has had ripple effects across sectors. They say small and medium-sized enterprises—often dependent on bank loans—continue to express concerns about loan affordability and working capital constraints.
What you should know
At its 302nd meeting in Abuja, the CBN reduced the MPR by 50 basis points, bringing it down from 27.5% to 27%.
CBN Governor Olayemi Cardoso explained that the adjustment reflects the Committee’s cautious attempt to ease monetary conditions in response to signs of moderating inflation and improving macroeconomic fundamentals.
In addition, the MPC adjusted the asymmetric corridor around the benchmark rate to +250/-250 basis points, compared to the previous +500/-100 basis points.
The Committee retained the Cash Reserve Ratio (CRR) for commercial banks at 45 per cent, while that of merchant banks was set at 16 per cent.
The National Bureau of Statistics reports that Nigeria’s headline inflation rate eased to 18.02 per cent in September compared to 20.12 per cent in August.
According to NBS, on a year-on-year basis, the headline inflation rate was 14.68 per cent lower than the rate recorded in September 2024 (32.70 per cent), showing that the headline inflation rate (year-on-year basis) decreased in September 2025 compared to the same month in the preceding year.
