Businesses and households are pressing the Central Bank of Nigeria (CBN) to reduce interest rates, with 60.9 per cent of respondents to its August 2026 Inflation Expectations Survey calling for a cut amid continued concerns over the cost of doing business.

The call comes a week ahead of the Monetary Policy Committee (MPC) meeting scheduled for September 21 and 22.

Even with the country’s monetary policy rate (MPR) reduced from its recent high of 27.5 per cent to 26.5 per cent, Nigeria’s interest rate is the second-highest in Africa, after Zimbabwe.

The survey, released by the CBN’s Statistics Department, showed that only 11.7 per cent of respondents wanted interest rates raised, while 27.4 per cent preferred the rates to remain unchanged.

he demand for lower rates was driven largely by households, although businesses also recorded a strong preference for a reduction.

The finding comes as respondents continued to perceive inflation as high, despite a marginal easing in the overall Inflation Perception Index from 40 points in July to 39.6 points in August.

The survey said 64.3 per cent of the respondents perceived inflation as high in August, compared with 66.3 per cent in July. Among businesses, the proportion that perceived inflation as high fell from 65.4 per cent to 61.8 per cent, while the share among households edged down from 67.3 per cent to 67.2 per cent.

Energy cost, insecurity, interest rates, transportation, natural disasters and foreign exchange are the most critical variables fueling high inflation.

Energy emerged as the leading driver of inflation perception among firms, with a score of 73.5 per cent, followed by insecurity at 67.1 per cent, interest rates at 66.9 per cent and the exchange rate at 66.4 per cent.

Among households, interest rates ranked as the leading inflation driver at 63.8 per cent, followed by transportation at 56.4 per cent, natural disasters at 50.3 per cent and energy at 54.2 per cent.

The survey also revealed a sharp difference in how inflation is being experienced across businesses and income groups.

Micro businesses recorded the highest inflation perception at 101.4 per cent, compared with 63.3 per cent for medium-sized firms, 63.1 per cent for large businesses and 57.4 per cent for small businesses.

Among households, those earning below N70,000 monthly recorded the highest perception of high inflation at 68.4 per cent, while respondents earning above N450,000 recorded the lowest at 30.8 per cent.

Rural households also reported greater inflation pressure than their urban counterparts, with 65.7 per cent perceiving inflation as high, compared with 63.2 per cent in urban areas.

Despite the persistent pressure, the survey pointed to a more moderate outlook for inflation over the coming months. The CBN said respondents anticipated a gradual decline in inflation over the next three and six months, with 29.4 per cent of businesses expecting inflation to moderate over the next six months, compared with 16.9 per cent expecting such an easing in the next month.

Among households, 23.2 per cent expected inflation to moderate over the next six months.

The expenditure outlook, however, showed that inflation is still expected to weigh heavily on businesses and households in the near term. Some 60.1 per cent of firms reported increased expenditure due to inflation in August, compared with 51.9 per cent of households.

Looking ahead, 60.3 per cent of all respondents expect inflation-related expenditure to increase next month, rising to 61.5 per cent over the next three months and 59.9 per cent over the next six months.

The survey also found that CBN communication has significant reach among respondents, with 93.7 per cent saying they follow the apex bank’s communication on inflation and interest rates.

It further showed that 92.9 per cent of respondents considered the CBN’s inflation communication transparent.