CBN Survey: 42.7% of Nigerians say loan interest rates are too high

By: Amarachi Okonkwo

A survey by the Central Bank of Nigeria (CBN) has revealed that 42.7 per cent of respondents perceived bank loan interest rates as high over the past three months, highlighting persistent concerns over borrowing costs in the country.

This finding forms a key highlight of the apex bank’s Consumer Expectation Survey for February 2026, which captures public sentiment on economic conditions, prices, and household finances.

According to the report, respondents expressed their views when asked to assess how interest rates had changed within the review period, with a significant proportion indicating that rates remain elevated. In line with this perception, a majority—63 per cent—said they would prefer interest rates to decline.

Despite concerns over borrowing costs, the survey showed that consumers maintained a broadly optimistic outlook on the macro-economy in February. The overall Consumer Sentiment Index stood at 0.8 points, although this marked a decline from 2.8 points recorded in January 2026.

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The CBN noted that the positive index represents the fourth consecutive month of sustained optimism among consumers regarding general economic conditions. The Economic Condition Index rose to 7.2 points in February, indicating continued confidence in the broader economy.

However, this optimism did not extend to household finances. The Family Financial Situation Index fell to -9.1 points, reflecting widespread pessimism among respondents about their personal financial conditions during the period.

In contrast, sentiment on income remained positive, with the Family Income Sentiment Index recorded at 4.3 points, suggesting that consumers still hold a favourable outlook regarding earnings.

On price developments, the report indicated growing concerns over the cost of living. The Consumer Sentiment Index on price changes dropped sharply to -9.9 points in February from 4.2 points in January, pointing to a prevailing perception that prices remain high.

Similarly, the index tracking average prices of selected items rose to 23.7 points from 22.6 points in the previous month, reinforcing the view that consumer goods prices are still elevated.

The survey, however, showed slight relief in food and household item prices, with the index for this category standing at -0.6 points, suggesting that consumers perceive a marginal moderation.

Looking ahead, respondents expect prices to increase further in the next six months, as reflected by a forward-looking index of 36.8 points.

The report underscores a mixed economic outlook, with sustained macroeconomic optimism overshadowed by concerns over high interest rates, rising prices, and strained household finances.