Ahead of the Central Bank of Nigeria’s Monetary Policy Committee (MPC) meeting scheduled for May 19 and 20, 2026, a new survey by the apex bank has shown that a majority of Nigerians want interest rates reduced amid persistent inflationary pressures and rising living costs.
The CBN’s April 2026 Inflation Expectations Survey revealed that 63.3% of respondents preferred a reduction in interest rates, while 26.0% wanted rates left unchanged and 10.7% supported further tightening.
The findings come as businesses and households continue to grapple with elevated energy, transportation and exchange rate costs despite expectations that inflation may moderate in the coming months.
What the report says
The report read, “The survey revealed high public engagement with CBN communications (92.1%), a general perception of transparency (93.3%), and a strong desire for a reduction in interest rates (63.3%).”
According to the report, the inflation expectations index stood at 40.5 points in April 2026, indicating that respondents still perceive inflation as high, although expectations point to moderation over the next six months.
The percentage of respondents who perceived inflation as high rose significantly to 67.2% in April from 56.4% in March. Among households, the figure increased to 68.8% from 61.7%, while business respondents reporting high inflation perception rose to 65.9% from 51.9% in March.
The survey showed that micro businesses recorded the highest perception of high inflation at 69.9%, followed by large businesses at 65.2%, small businesses at 64.6%, and medium businesses at 63.2%.
Across income groups, households earning below N70,000 monthly reported the highest perception of inflation at 77.9%, while respondents earning between N250,001 and N350,000 recorded the lowest perception at 46.6%.
The report also highlighted a rural-urban divide, with 70.4% of rural households perceiving inflation as high compared to 67.6% of urban households.
Energy, transport, FX pressures dominate
Businesses and households identified energy costs, transportation, exchange rate volatility, insecurity, and infrastructure challenges as the major drivers of inflationary pressure in the review period.
The survey noted that raw materials, household purchases, and middlemen activities were considered less significant contributors to inflation perception during the period.
On inflation expectations, respondents projected a gradual decline in inflation over the next six months.
Among businesses, the proportion expecting inflation to increase fell from 52.2% next month to 50.5% over the next six months, while those expecting inflation to decline rose from 14.0% to 24.6% within the same period.
Households also expressed optimism about moderating inflation, with the share expecting inflation to remain high dropping from 65.7% next month to 59.0% over the next six months.
Spending outlook remains pressured
Despite expectations of easing inflation, respondents still anticipate rising expenditure levels.
Overall, 67.9% of respondents said their expenditure would increase in the current month, while businesses recorded a slightly higher expenditure outlook at 69.0% compared to 66.7% among households.
The survey further showed that households were more likely to believe expenditure would remain relatively stable across the review periods.
The report also revealed strong public engagement with CBN policy communication, with 92.1% of respondents saying they follow the apex bank’s communication on inflation and interest rates.
Among business respondents who follow CBN communication, 32.1% rely on social media platforms, 17.7% use television, while 12.5% follow through online news platforms. For households, radio stations accounted for 31.0%, followed by social media at 27.1% and television at 13.9%.
The CBN said the survey covered 3,587 respondents comprising 1,923 firms and 1,664 households drawn from the National Bureau of Statistics establishment frame and the National Population Commission’s enumeration areas.
What you should know
The MPC said the decision to cut the benchmark rate was driven by sustained improvements in key macroeconomic indicators, particularly inflation.
However, the National Bureau of Statistics (NBS) recently reported that Nigeria’s headline inflation rate rose to 15.69% in April 2026, up from 15.38% recorded in March.
The latest figure reflects renewed consumer price pressures across the economy despite a sharp moderation in month-on-month inflation and a significant decline compared to inflation levels recorded in the same period last year.
Source: https://www.cbn.gov.ng/Out/2026/STD/April%20%202026%20IES%20Report.pdf
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