Households across Nigeria are still facing financial pressure and are becoming more cautious about major spending, according to the latest findings by the Central Bank of Nigeria (CBN), highlighting weak consumer confidence in the country’s economy.

The February 2026 Household Expectations Survey revealed continued pessimism, with many respondents unwilling to spend on high-value items such as housing, vehicles, appliances, investments, and rent. The negative outlook across different timeframes reflects the struggles of consumers dealing with reduced income and high borrowing costs.

The report also showed tightening credit conditions, as 42.7 per cent of respondents noted an increase in bank lending rates over the past three months, while 39.2 per cent expect rates to rise further soon. This trend is largely linked to ongoing monetary policies aimed at controlling inflation, which have made borrowing more expensive.

Despite these conditions, most households prefer lower interest rates. About 63 per cent of respondents supported a reduction in rates, and nearly half indicated they would accept potential inflation risks if it meant easier access to credit.

The survey highlights the challenge policymakers face in balancing inflation control with the need to boost consumer spending. High interest rates, combined with rising living costs, are making it harder for households to afford basic needs, leading many to delay major financial decisions and reduce discretionary spending.

Similar concerns were echoed in the CBN’s Business Expectations Survey, where businesses identified high interest rates, bank charges, insecurity, multiple taxation, and poor power supply as key obstacles affecting operations.

However, some businesses remain cautiously optimistic, expecting gradual improvements in economic conditions, including a stronger naira and better access to credit in the coming months.

For households, the short-term outlook remains uncertain, as high costs and unstable income continue to limit spending, potentially slowing recovery in sectors that depend heavily on consumer demand.