Nigeria's Inflation Eases to 15.10% as 65% of Citizens Demand Rate Cuts Ahead of MPC Meeting
Nigeria's headline inflation declined marginally to 15.10% in January 2026 from 15.15% in December, while survey data reveals strong public support for monetary easing as the Central Bank prepares for its next policy decision.
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Nigeria's headline inflation rate declined to 15.10% in January 2026, down from 15.15% recorded in December 2025, according to the latest Consumer Price Index report released by the National Bureau of Statistics (NBS). The marginal 5-basis-point decrease comes as the Central Bank of Nigeria (CBN) prepares for its upcoming Monetary Policy Committee (MPC) meeting amid mounting pressure for interest rate relief.
The modest deceleration marks the second consecutive month of single-digit month-on-month changes following a prolonged period of elevated price pressures. While the year-on-year rate remains in double digits, the sequential improvement suggests some stabilization in price dynamics across key consumption categories.
Public Sentiment Favours Monetary Easing
New survey data from the CBN's January 2026 Household Expectations Survey reveals that 65% of Nigerians favour lower lending rates, signaling widespread demand for monetary policy accommodation despite persistent inflation concerns. The findings, released ahead of the MPC's scheduled meeting next week, underscore the tension between price stability objectives and economic growth imperatives facing policymakers.
The CBN has maintained a restrictive monetary stance throughout 2025, with the benchmark Monetary Policy Rate held at elevated levels to combat inflationary pressures stemming from currency depreciation, fuel subsidy removal, and supply-side constraints. The survey data suggests that high borrowing costs have significantly impacted household finances and business investment decisions, creating political pressure for policy adjustment.
"The findings come ahead of the MPC meeting next week," according to Nairametrics, highlighting the timing sensitivity of public expectations as the committee deliberates its next move. The survey results indicate that concerns about credit access and economic activity may be outweighing inflation anxieties among the general population.
Agricultural Sector Faces Price Adjustment Pressures
The Centre for the Promotion of Private Enterprise (CPPE) has called on the Federal Government to implement targeted measures to shield farmers from the unintended consequences of falling food prices, which contributed to the January inflation moderation. The advocacy group's intervention highlights the complex transmission effects of disinflation on producer incomes in Africa's largest economy.
Food inflation, which carries significant weight in Nigeria's CPI basket, has shown signs of easing as harvest season supplies increased market availability. However, the CPPE warns that rapid price declines could undermine farmer profitability and discourage future planting decisions, potentially creating supply disruptions in subsequent growing seasons.
"The Centre for the Promotion of Private Enterprise has called on the Federal Government to urgently implement targeted measures to shield farmers from the unintended consequences of falling food prices," according to the organization's statement reported by Nairametrics. The call for intervention reflects concerns that deflationary pressures in the agricultural sector could reverse recent gains in domestic food production.
Policy Dilemma for Central Bank
The CBN faces a challenging policy environment as it weighs competing pressures from inflation dynamics, public sentiment, and economic growth considerations. While the 15.10% inflation rate remains above the central bank's medium-term target range of 6-9%, the marginal decline provides some room for maneuver on interest rate policy.
Market analysts note that the MPC's decision will likely hinge on core inflation trends, which strip out volatile food and energy components, as well as exchange rate stability and fiscal policy coordination. The naira's performance in foreign exchange markets and government spending patterns will factor prominently in the committee's assessment of underlying price pressures.
The 65% public support for lower rates, as captured in the CBN's own household survey, adds a political dimension to what is traditionally a technocratic policy decision. With Nigeria's economy expanding at a modest pace and unemployment remaining elevated, pressure for growth-supportive policies continues to mount from business groups and civil society organizations.
The NBS is scheduled to release February inflation data in mid-March, which will provide the MPC with updated information on price trends before its next scheduled meeting. Economists will be monitoring food price movements, energy costs, and exchange rate pass-through effects as key determinants of the inflation trajectory in coming months.