Most Nigerians want the Central Bank of Nigeria (CAN) to reduce interest rates despite persistent inflation pressures that continue to push up living and business costs across the country, the apex bank’s latest Inflation Expectations Survey has shown.

The survey, released ahead of the CBN’s Monetary Policy Committee (MPC) meeting scheduled for May 19 and 20, showed that 63.3 per cent of respondents preferred lower interest rates, while 26 per cent wanted rates left unchanged and 10.7 per cent supported further increases.  

The findings reflect growing pressure on households and businesses struggling with expensive borrowing costs, high transportation fares, rising energy prices and the continued weakness of the naira.

The CBN has maintained a tight monetary policy stance over the past two years in an attempt to curb inflation and stabilise the foreign exchange market after major economic reforms, including petrol subsidy removal and exchange rate liberalisation.

At its February meeting, the MPC reduced the benchmark interest rate by 50 basis points to 26.5 per cent from 27 per cent, marking the second rate cut after months of aggressive tightening aimed at containing inflation and stabilising the naira. 

However, rising food, transport and energy costs continue to weigh heavily on households and businesses.

The latest survey suggests many Nigerians still believe inflation remains severe.

According to the report, the inflation perception index stood at 40.5 points in April 2026, indicating that respondents still generally viewed inflation as high, though many expect conditions to improve gradually in the coming months.  

The proportion of respondents who perceived inflation as high rose sharply from 56.4 per cent in March to 67.2 per cent in April.  

Among households, 68.8 per cent described inflation as high in April, up from 61.7 per cent in March. For businesses, the figure climbed to 65.9 per cent from 51.9 per cent.  

The report also showed that poorer Nigerians are feeling the impact more strongly.

Households earning below N70,000 monthly recorded the highest inflation perception at 77.9 per cent, while respondents earning between N250,000 and N350,000 reported the lowest perception at 46.6 per cent.  

A rural-urban divide was also evident, with 70.4 per cent of rural households reporting high inflation perception compared to 67.6 per cent in urban areas. 

Among businesses, micro firms appeared to be under the greatest pressure. Nearly 70 per cent of micro businesses reported high inflation perception, higher than small, medium and large firms.  

Businesses and households identified energy costs, transportation, exchange rate volatility, insecurity and poor infrastructure as the biggest drivers of inflation in April.  

This comes as Nigerians continue to battle elevated food prices, high electricity tariffs and increased transport costs linked to fuel price adjustments and logistics challenges.

Despite concerns about current inflation levels, respondents expressed cautious optimism that inflationary pressures may gradually ease over the next six months.

Among businesses, the proportion expecting inflation to increase declined from 52.2 per cent for next month to 50.5 per cent over the next six months, while those expecting inflation to decrease rose from 14 per cent to 24.6 per cent within the same period.  

Households also projected a gradual moderation in inflation, although a majority still expect prices to continue rising.  

The survey further showed that expenditure pressures remain elevated.

About 69 per cent of businesses expect their expenditure to increase in the current month, slightly higher than the 66.7 per cent recorded among households.  

The report also highlighted strong public attention to monetary policy decisions.

About 92.1 per cent of respondents said they closely follow CBN communication on inflation and interest rates, mainly through social media, radio and television.  

In addition, 93.3 per cent said the apex bank was transparent in its communication, while 78.3 per cent believed CBN announcements have an impact on inflation trends.  

The survey sampled 3,587 respondents nationwide, including 1,923 firms and 1,664 households. 

The CBN noted that the findings represented respondents’ opinions and not the official position of the central bank.