Victor EzejaA survey conducted by the Central Bank of Nigeria (CBN) revealed that 65.8 per cent of respondents want the monetary authority to lower interest rates.
According to the CBN’s Inflation Expectations Survey, 23.0 percent of respondents want interest rates to remain the same, while only 11.2 per cent want them to go up.
Join our WhatsApp ChannelThe finding comes just days before the Monetary Policy Committee (MPC) meeting to decide on the future path of interest rates.
Prime Business Africa had reported that the apex bank has scheduled to hold its 301st MPC meeting on July 21–22, 2025, to deliberate on monetary policy, including the benchmark interest rate (MPR), which currently stands at 27.5 per cent.
The CBN survey outcome highlights the growing expectations for monetary easing among economic stakeholders.
Business leaders and SMEs argue that high borrowing costs (27.5% MPR) stifle growth, with some calling for accommodative policies to ease access to credit.
Divergent Views Among Analysts
Analysts hold divergent views on what the monetary authority should do regarding the benchmark interest rate.
While some called for a reduction of the MPR, others advocated maintaining the current rate of 27.5 per cent. The committee had hiked the MPR six times last year by 875 basis points from 18.75 per cent to 27.5 per cent to rein in inflation, and retained rates twice this year.
Nigeria has witnessed a drop in the headline inflation for three consecutive months following the rebased consumer price index, dropping from 23.71 per cent in April, 22.97 per cent in May, to 22.22 per cent in June 2025. However, experts believe it is still elevated at that level.
Analysts at CardinalStone and Arthur Stevens Asset Management advocate a 50–100 basis point reduction in H2 2025, citing declining inflation and FX stability.
Also, the Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, advocated an interest rate cut by 25 basis points to 25 per cent.
He highlighted the broader effects of a lower Monetary Policy Rate, such as lower small business borrowing costs and a boost to the productive sector.
Additionally, Rewane’s Financial Derivatives Company predicted that inflation would decrease from 22.97 per cent in June to 22.65 per cent.
READ ALSO: Energy, Exchange Rate, Transportation Top Three Drivers Of Inflation In Nigeria – CBN Survey
On the other hand, Financial firms like Afrinvest and Comercio Partners warn against what they believe to be premature cuts, fearing capital flight and naira instability. They highlight persistent food inflation (a 3.25 per cent monthly rise in June) and external risks. Some analysts stressed that the monetary authority should maintain the MPR at 27.5 per cent to consolidate recent gains in inflation control and FX stability.
