As the Central Bank of Nigeria (CBN) prepares for its 301st Monetary Policy Committee (MPC) meeting this week, a recent survey reveals that majority of Nigerians are calling for a reduction in interest rates. This widespread sentiment reflects growing public concern over the high cost of borrowing and the impact of the tight monetary policy on households and businesses across the nation.

According to the CBN’s Household Expectations Survey report for June 2025, 62.4 per cent of respondents expressed a clear preference for a reduction in interest rates. When presented with the choice between maintaining high interest rates to curb inflation and lowering them to ease access to credit, 45 per cent of respondents favoured a rate reduction, while 40.3 per cent supported an increase to bring inflation under control. The remaining respondents were either neutral or uncertain.

The survey also showed a pessimistic overview of consumer confidence regarding the economy’s future trajectory, especially if inflationary pressures persist unchecked. The report noted that a significant majority of surveyed households believe that the Nigerian economy will weaken if prices were to rise faster than the current rate, indicating deep-seated anxiety about purchasing power and economic stability.

In June 2025, the overall consumer sentiment stood at -13.2 index points, reflecting a broad sense of pessimism among consumers. While the Economic Conditions Index showed a marginal improvement, rising to -11.6 index points from -12.6 index points in May 2025, other key indicators worsened. The Family Financial Situation Index deteriorated to -22.3 index points in June 2025, indicating a more pessimistic outlook than in May. Similarly, Family Income sentiment remained largely flat at -5.9 index points in June 2025, nearly unchanged from -5.7 points recorded in May.

The CBN announced that the 301st meeting of the Monetary Policy Committee, 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. The two-day deliberation, commencing at 10:00 a.m. on July 21, will culminate in an official announcement by CBN Governor Olayemi Cardoso, who will disclose the committee’s policy decisions on Tuesday, July 22.

At its preceding 300th MPC meeting in May 2025, the CBN opted to maintain a conservative stance, keeping the Monetary Policy Rate (MPR) unchanged at 27.5 per cent. 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 per cent for Merchant Banks.
• Liquidity Ratio: Maintained at 30 per cent.

The May vote was notably unanimous, with all 12 MPC members supporting the retention of existing rates, citing the need to monitor the effectiveness of current policies before implementing further adjustments.

However, the prevailing public sentiment, as revealed by the Household Expectations Survey, puts pressure on the MPC to consider a more accommodative stance. 

The divergence between the central bank’s cautious approach and the public’s desire for reduced borrowing costs is poised to be a key dynamic influencing the decisions made at this pivotal meeting. The market will be watching closely to see if the committee prioritises inflation containment through tight liquidity or responds to the growing calls for measures to stimulate economic activity and ease financial burdens on citizens and businesses.