Victor EzejaAs worries about inflation and economic hardship mount, at least 71.4% of Nigerians are demanding that interest rates be lowered.
The Central Bank of Nigeria (CBN) conducted the Inflation Expectations Survey (IES) in September 2024, gathering opinions of individuals and companies nationwide.
Join our WhatsApp ChannelThe purpose of the September 9–13 survey was to find out how the public felt about inflation and what they thought will happen to the economy in the future.
The report said 1,750 businesses and 1,665 families from 36 states and the Federal Capital Territory participated in the study, which revealed a strong demand for lower lending rates.
According to the report, 16.1% of respondents wanted rates to stay the same, while just 12.5% backed an increase.
Widespread worries about the cost of borrowing and how it may affect household and company expenses are reflected in the overwhelming majority’s support for a rate cut.
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“Most of the respondents (71.4 per cent) prefer the CBN to reduce the interest rate, while 12.5 per cent expect the interest rate to be raised. The remaining 16.1 per cent preferred the rates to remain unchanged,” part of the report said.
The study further revealed that about 58.5% of respondents perceived the current inflation rate as high, with both businesses and households reporting a negative outlook. This reveals that inflation remains a major concern for Nigerians.
Key drivers of Inflation
According to the poll, the main drivers of inflation were insecurity, exchange rates, transportation expenses, and energy costs. Respondents repeatedly highlighted these elements as a contributing cause to the growing expense of living.
The households with the greatest inflation perception index were those with lower incomes, especially those making less than N30,000 a month.
According to the survey, Nigerians have a cautiously optimistic outlook for the future. Inflation is anticipated to progressively decrease over the following six months by both individuals and companies.
Businesses, however, are more hopeful than consumers about a possible drop in inflation. Energy prices, transportation expenses, exchange rates, and insecurity are some of the elements that continue to influence the forecast of future inflation.
Inflation and CBN Measures
Nigeria’s inflation rate had been on an upward spiral reaching a peak of 34.19% in June 2024 before dropping to 32.15% August, according to the National Bureau of Statistics (NBS).
To tackle the soaring inflation, the Central Bank of Nigeria has the monetary policy rate (MPR), the benchmark interest rate for five consecutive times amounting to a total of 850 basis points from 18.75% to 27.25%.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
