As worries about inflation and economic hardship mount, at least 71.4% of Nigerians are demanding that interest rates be lowered. This is in line with the Central Bank of Nigeria’s (CBN) September 2024 Inflation Expectations Survey (IES), which polled consumers and companies nationwide.
The purpose of the survey, which was carried out from September 9 to September 13, was to determine how the general people felt about inflation and what they anticipated would happen to the economy in the future.
1,750 enterprises and 1,665 families from 36 states and the Federal Capital Territory participated in the study, which revealed a strong demand for lower interest rates. 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.
The report revealed: “Most of the respondents (71.4 percent) prefer the CBN to reduce the interest rate, while 12.5 percent expect the interest rate to be raised. The remaining 16.1 percent preferred the rates to remain unchanged.”
Nigerians continue to have serious concerns about inflation, according to the IES report available to BrandSpur national news brand.
A pessimistic perspective was reported by both families and businesses, with approximately 58.5% of respondents characterising the present inflation rate as excessive. One of the main factors influencing how inflation is perceived is energy expenses.
According to the poll, the main causes of inflation were insecurity, exchange rates, transportation expenses, and energy costs. Respondents consistently cited these elements as a contributing cause to the growing expense of living.
The survey also showed that families and companies had different perceptions of inflation. Compared to families, businesses expressed a somewhat less pessimistic assessment of the current state of inflation. Urban residents had a lower inflation index than rural consumers, and small firms, in particular, had the least negative opinion.
Furthermore, households with the greatest inflation perception score were those with the lowest incomes, especially those making less than N30,000 per month. Nigerians are cautiously optimistic about the future, according to the survey. Over the next six months, families and companies anticipate a modest reduction in inflation.
But compared to individuals, companies are more hopeful about a possible drop in inflation. Several factors, including energy prices, transportation costs, exchange rates, and insecurity, continue to influence the forecast of future inflation. The majority of respondents, or 62.1%, said they keep a close eye on CBN announcements about interest rates and inflation, according to the survey.
Furthermore, although 50.9% of respondents think that CBN communications only slightly affect inflation forecasts, 61.8% of respondents think that the CBN is transparent in its communication efforts.
