The Central Bank of Nigeria’s (CBN) Business Expectations report, released on Wednesday, indicates that business owners are optimistic about the future of doing business in Nigeria. The report shows that entrepreneurs expect improved business performance in August 2024, with an optimism index of 7.6 points. This positivity is expected to continue, with indices of 19.3 points and 30.7 points for the next three and six months, respectively.
The report attributes this optimism to various sectors, including Mining, Quarrying, Electricity, Gas & Water Supply, Agriculture, Market Services, Manufacturing, and Non-Market Services. Specifically, the Agriculture Sector is driving optimism, with respondents expressing positive outlooks for the next month, three months, and six months.
However, the report also highlights challenges, such as insecurity, high interest rates, insufficient power supply, and high/multiple taxes, which are constraining business activities. Additionally, respondents expect the exchange rate to depreciate in the short term, while borrowing rates are expected to rise.
Despite a slight drop in confidence levels compared to June 2024, the overall confidence index stands at 0.1 points. The report suggests that business owners are cautiously optimistic about the future, with the Agriculture Sector showing the highest prospect for employment, followed by the Industry and Services sectors.
