Business Expectations in Nigeria
The latest Business Expectation Survey Report from the Central Bank of Nigeria (CBN) reveals that businesses in the country are cautiously optimistic about the macroeconomic environment. However, there are concerns about the depreciation of the Naira in the coming months.
Despite the overall optimism, businesses are expressing pessimism about various factors such as the volume of business activities, financial conditions, access to credit, total orders, and capacity utilization. This indicates a sense of uncertainty among businesses in Nigeria.
According to the survey, businesses anticipate a decline in the value of the Naira in the next three months, followed by a projected increase in the following six months. This fluctuation in currency value is a cause for concern among respondents from different industries.
One bright spot highlighted in the report is the construction industry, which showed a positive outlook for its activities during the review period. However, perceptions of business activity volume, total orders, financial circumstances, and credit availability were mostly negative among respondents.
On a positive note, businesses are looking to increase their workforce in December 2024, with the agriculture sector showing significant growth potential. This indicates a potential boost in employment opportunities in the coming months.
Consumer Outlook in Nigeria
The CBN’s Consumer Expectation Survey Report paints a slightly different picture compared to the business expectations. Consumers in Nigeria were negative about the macro economy in November, with concerns about rising costs in various sectors.
Households anticipate higher expenses in areas such as transportation, rent, car/vehicle purchases, house purchases, and medical costs in the current month. This reflects the challenges faced by consumers in managing their expenses amidst economic uncertainties.
Despite the pessimism, a significant percentage of respondents believe that prices of durable and non-durable household items may decrease in the coming months. This indicates a glimmer of hope for consumers who are hoping for some relief in terms of cost of living.
