- CBN Surveys Highlight Business Confidence but Consumer Concerns Over Rising Costs
Nigerian businesses remain optimistic about the broader economic landscape but forecast a further depreciation of the naira in December 2024 and the first quarter of 2025. This projection was revealed in the Central Bank of Nigeria’s (CBN) November 2024 Business Expectation Survey Report.
While confidence in the macroeconomic environment remained positive, the report highlighted mixed sentiments. Firms expressed optimism regarding business activities and operational performance but held a pessimistic outlook on financial conditions, access to credit, total orders, and average capacity utilization.
The report stated:
- “The overall confidence index (CI) on the macroeconomy indicated that businesses were optimistic in November 2024.
- “Businesses expect the naira to depreciate in the current month, next month, and over the next three months but anticipate an appreciation in the next six months.
Optimism was driven by respondents across all sectors, with the construction sector particularly positive about its operations. Businesses also projected an increase in employment for December 2024, with agriculture leading in expansion prospects.
However, concerns lingered about credit access and financial conditions, signaling challenges that could affect business growth.
Consumer Concerns Persist
Meanwhile, the CBN’s Consumer Expectation Survey Report painted a less optimistic picture for households. The survey indicated growing concerns about the macroeconomy, with consumers anticipating increased costs for transportation, rent, vehicle purchases, housing, and medical expenses in December.
Key findings from the report include:
- 61.1% of respondents believe prices for non-durable goods, while currently high, will decrease slightly in the short term.
- 57.6% expressed similar expectations for durable household items.
The contrasting perspectives from businesses and consumers highlight the dual challenges of managing economic growth while addressing rising living costs in Nigeria. The CBN’s reports underscore the need for targeted interventions to stabilize the naira and improve access to credit for businesses and households alike.
