The Central Bank of Nigeria’s (CBN) October 2024 Inflation Expectations Survey (IES) has revealed a strong desire among Nigerians for lower interest rates, with 76% of respondents advocating for a rate reduction.
This sentiment emerges amidst persistently high inflation and growing financial strain on households and businesses.
The survey, conducted across Nigeria’s 36 states and the Federal Capital Territory, captured the views of 1,750 businesses and 1,665 households, providing insights into the nation’s inflation perceptions and economic outlook.
In a notable shift from previous surveys, the October report shows that 76% of Nigerians now favour an interest rate cut, up from 71.4% in September.
The survey also highlights pervasive inflation concerns, with 76.1% of respondents considering inflation to be “high.”
The survey results revealed different inflationary perceptions between households and businesses, with households, especially those in urban areas, feeling the inflationary impact more acutely.
Despite the prevailing inflationary pressures, respondents expressed cautious optimism regarding potential price stabilization. Many anticipate a moderate easing of inflation over the next six months, with businesses showing a stronger expectation of relief compared to households.
This optimism could be driven by seasonal economic adjustments, particularly in the food sector, which may offer temporary respite from the high inflation rates.
Businesses, in particular, appear hopeful for improvements, potentially tied to expected policy adjustments or favorable economic conditions.
Since the appointment of CBN Governor Yemi Cardoso, Nigeria has seen a rapid escalation in the Monetary Policy Rate (MPR), which has been raised five times this year, reaching 27.25% in September 2024 from an initial 18.75%.