The Central Bank of Nigeria (CBN) has revealed that while businesses remain optimistic about the macroeconomic environment, they project further depreciation of the naira in December 2024 and the first quarter of 2025.
This was disclosed in the CBN’s Business Expectation Survey Report for November 2024, which provided insights into firms’ outlook on business activities, financial conditions, and credit access.
The report noted that while the overall confidence index (CI) on the macroeconomy was positive, businesses expressed concerns about key indicators. “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 report stated.
Optimism was driven by respondents across all sectors, with the construction sector expressing confidence in its operations during the review period. However, the outlook on factors such as the volume of business activities, total orders, financial conditions, and access to credit remained negative for November. Despite this, businesses were optimistic about an improved volume of activities in the coming months.
The survey also highlighted that businesses plan to expand their workforce in December, with the agriculture sector showing the highest employment prospects.
Consumer Sentiments Pessimistic Amid Rising Costs
Meanwhile, the CBN’s latest Consumer Expectation Survey Report painted a contrasting picture, with households expressing pessimism about the macroeconomic environment in November.
According to the report, households anticipated increases in the cost of transportation, rent, car purchases, housing, and medical expenses in December.
Additionally, while 61.1% of respondents perceived the prices of non-durable household items as high, they expect these prices to decline this month. Similarly, 57.6% projected a drop in prices for durable goods next month.
These findings reflect the mixed sentiments among businesses and consumers as the economy navigates ongoing challenges.
