ABUJA, Aug 22 (Reuters) – A recent survey by the Central Bank of Nigeria (CBN) indicates that Nigerian businesses anticipate the naira will weaken through December 2024 but are hopeful for an appreciation in 2025. The survey, conducted in the third week of July, included responses from 1,600 firms across various sectors.
Thank you for reading this post, don't forget to subscribe!According to the CBN, the poll revealed that businesses expect the naira to “depreciate in the current month, next month, and the next three months, but appreciate in the next six months.” The local currency has depreciated by approximately 70% against the dollar since June 2023, following a move to allow it to trade more freely to boost investor confidence.
Businesses, including major players like MTN Group Ltd, have faced significant financial strains due to the naira’s devaluation, which has increased dollar-denominated liabilities in naira terms.
The survey, a monthly check-up on Nigeria’s leading firms in manufacturing, construction, energy, and services, also highlights other pressing issues: insecurity, high interest rates, insufficient power supply, multiple taxes, and corruption. Businesses have cited these factors as major constraints affecting their operations in Africa’s most populous nation.
The firms surveyed also expressed concern over the high inflation rate, which stood at 34.19% in June. However, recent data shows a slight deceleration to 33.4% in July, marking the first reduction in almost two years.
The Central Bank’s efforts to enhance transparency and broaden public access to economic indicators continue with this monthly survey, reflecting the current economic climate and future expectations of Nigerian businesses.
