Business confidence in Nigeria has dipped as concerns over a potential naira depreciation loom, with the Central Bank of Nigeria’s (CBN) October Business Expectation Survey (BES) reporting a 3.2-point drop in the Overall Confidence Index (OCI) from 17.7 to 14.5. The survey highlights a cautious outlook among businesses, driven largely by fears of further currency devaluation by year-end.
The October survey reveals a downward trend in confidence indices for the present, upcoming month, and the next six months. Specifically, the OCI for October, November, and the next half-year fell to 1.4, 4.8, and 21.8 points, respectively—compared to September’s 3.2, 6.2, and 29 points.
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Despite some optimism within various sectors, businesses cite persistent challenges. “High interest rates, insecurity, multiple taxes, inadequate power supply, and an unfavorable economic climate are major constraints,” the CBN noted.
Industry respondents also expect a short-term naira depreciation, although they are hopeful for some recovery within the next six months. On a positive note, most sectors project growth in November, especially in Agriculture, which anticipates the highest potential for employment and expansion.
As Nigeria’s businesses navigate the challenges of interest rates and tax pressures, sectors aside from construction are reportedly planning for workforce expansion next month, indicating cautious optimism amid prevailing economic headwinds.
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