- A survey by the Central Bank of Nigeria projected a gradual decline in inflation over the next six months
- The respondents also expect lower spending as their expenditure gradually decreases
- The survey stated that 65.1 per cent of respondents want the CBN to reduce the interest rate
The Business Expectations Survey Report for February 2025 by the Central Bank of Nigeria (CBN) projects a gradual drop in the inflation rate over the next six months.
The report of the survey stated that businesses and household respondents expect the level of inflation to gradually reduce over the next six months.
The respondents also expect lower spending as their expenditure gradually decreases over the next six months.
By income distribution, the report indicated that more households earning above N200,000 per month perceived inflation to be moderating.
The respondents said factors such as energy costs, exchange rate, transportation costs, interest rate, and insecurity influenced their perception of the inflation rate in February 2025.
The report noted that high interest rates recorded the highest rate with 75 per cent of the respondents, followed by insecurity with 73.9 per cent.
Insufficient power supply recorded at 73.8 per cent, high taxes with 73 per cent, financial challenges as taking 68.5 per cent, with high bank charges recording 76.6 per cent.
Respondents want a reduction in interest rate
According to the report, 65.1 per cent of respondents want the CBN to reduce the interest rate.
Recall that at its 299th Monetary Policy Committee (MPC) meeting in February, the CBN retained the interest rate at 27.50 per cent, alongside other monetary parameters.
The apex bank cited moderating inflation as it assesses the economic outlook for 2025.
The CBN’s hold stance in February followed six consecutive hikes of the interest rate in 2024, which saw the rate rise from 18.75 per cent in January 2024 to 27.50 per cent in November 2024.
It said its decision was to curb Nigeria’s soaring inflation, which it said would have surged to 42.81 per cent in December 2024 if not for its policy interventions.
Inflation rate dropped for second consecutive month in February
The National Bureau of Statistics (NBS), in its recently released Consumer Price Index (CPI) report, said the inflation rate for February dropped to 23.18 per cent, a second consecutive monthly decline from the 24.48 per cent recorded in January.
The February 2025 inflation rate was also an 8.52 percentage point decrease from the 31.70 per cent recorded in February 2024, following the adoption of a new CPI rebasing methodology.
Inflation soared throughout 2024, reaching 34.80 per cent in December from 34.60 in November 2024, having surpassed a 28-year high four times in 2024.
Achieving 15% inflation target in 2025 requires effective authorities’ collaboration – CBN
Meanwhile, TheRadar earlier reported that the Central Bank of Nigeria (CBN) said achieving the Federal Government’s 15 per cent inflation target as contained in the 2025 budget will require effective collaboration between the monetary and fiscal authorities, as well as the private sector.
The Deputy Governor of the Economic Policy Directorate of the CBN, Muhammad Abdullahi, stated this on Tuesday, January 21, during the 11th National Economic Outlook: Implications for Businesses in 2025, organised by the Chartered Institute of Bankers of Nigeria (CIBN) Centre for Financial Studies in collaboration with B. Adedipe Associates Ltd in Lagos.
