Nigeria’s economic pulse is increasingly influenced by the everyday lives of its people as much as by high-level budgetary policy. The Household Expectations Survey conducted by The Central Bank of Nigeria (CBN) in February 2025 paints a clear picture of how average Nigerians perceive the country’s current economic situation and what they believe should be done to improve it. From interest rates to inflation, the public’s voice is growing louder, and their expectations are set on reducing financial burdens, creating room for growth, and building an Economy that works for everyone.
According to the survey, 65.5% of Nigerian households believe that lowering Lending Rates is the best course of action. This sizable majority points to a public hearing for easier access to credit for personal purposes, small company funding, or home financing. 11.6% of respondents were unsure, 12.5% chose stability, wanting no change, and just 10.4% supported higher rates. The figures show a growing realization that high borrowing rates have caused more harm than benefit for many families and business owners facing lower earnings and skyrocketing expenses.
High interest rates stifle Investment and SME growth.
This is consistent with the more general economic realities. Nigeria has maintained a high Monetary Policy Rate (MPR), which is the standard for lending rates, increasing to 22.75% in early 2025 in an attempt to control inflation. This may lessen price pressures in theory, but in practice, it has increased borrowing costs, deterring investment, driving down consumer spending, and delaying the expansion of businesses. The upshot means a restricted credit climate that stifles Innovation and productivity, particularly among small and medium-sized firms (SMEs), which are the backbone of the Nigerian economy.
Moreover, the survey explores public sentiment on inflation. With 68.1% of those surveyed believing that rapid price increases would weaken the economy, it’s clear that the average Nigerian household is feeling the heat. Citizens have witnessed daily necessities like food, fuel and transportation become more expensive, further straining already tight budgets. Nigeria’s Headline Inflation rate stood at 23.18% in February 2025, while the food Inflation rate in February 2025 was 23.51% on a year-on-year basis, according to data from the National Bureau of Statistics (NBS). This sustained inflationary pressure has eroded purchasing power and made it more difficult for families to afford basic needs.
Public opinion divided over inflation control measures.
Only a small minority, 5.5% of people, believe that inflation could have a positive effect, while 18.3% think it makes no difference. In addition to being a financial burden, the rising living expenses pose a danger to social stability and the nation’s economic resiliency. Interestingly, responses were nearly evenly divided when asked on the policy conundrum of whether to maintain interest rates low to promote growth or raise them to combat inflation. While 42.1% supported stricter monetary management to maintain prices, 44.1% supported lower interest rates despite the possibility of inflation.
Such a division underlines a deeper tension in Nigeria’s economic narrative between the urgent need for growth vs the long-standing struggle with inflation. Yet amid the concerns, there is a gleam of confidence. The consumer confidence index, which gauges people’s feelings about their financial future, increased from -10.8 in January to -5.8 in February 2025. According to forecasts, this trend is expected to continue, rising to 12.3 by August and turning positive by May with a projected 4.0 points.
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The trajectory reflects growing public hope for an economic rebound, possibly driven by signs of reform, better access to capital, and more responsive governance. Meanwhile, measures by the federal government to stimulate the economy, such as additional Infrastructure expenditure, targeted Subsidies for Agriculture and manufacturing, and encouragement for digital entrepreneurship, may also be contributing to this cautious optimism. However, these initiatives might not reach their full potential if the twin problems of high inflation and credit inaccessibility are not addressed.