The Central Bank of Nigeria, CBN, has disclosed that investors in the country will feel the impact of its various monetary measures as their businesses will begin to improve form August.
The Yemi-cardoso-led CBN, in the Business Expectations report released on Wednesday, assured business owners that their businesses will experience better outlook henceforth starting from this month.
Basically, the apex bank projects that businesses will experience 7.6 points Optimism Index for August, 19.3 in three months, and 30.7 points for the next six months.
CBN said, “the outlook for next month, next three months, and next six months all indicated optimism with indices of 7.6, 19.3, and 30.7 points, respectively,” the report read.
It explained that the Mining, Quarrying, Electricity, Gas & Water Supply, Agriculture, Market Services, Manufacturing, and Non-Market Services will drive optimism in the macro economy.
According to the apex bank, “The expected drivers for the optimism on the macroeconomy in the next month are Mining, Quarrying, Electricity, Gas & Water Supply (35.3 points), Agriculture (9.9 points), Market Services (7.8 points), Manufacturing (6.3 points), and Non-Market Services (4.8 points).
“Respondents indicated optimism on the overall business outlook in July 2024, as the business conditions in Nigeria are expected to improve. This optimism is driven by the opinion of respondents from the Agriculture Sector.
“Respondents’ outlook for the next month, next 3 months, and next 6 months all indicated optimism. The positive outlook in the volume of business activities of the firms in the next month implied improved prospects for employment in the same period. The sector with the highest prospect for employment is the Agriculture Sector, followed by the Industry and Services sectors.
“The respondent firms opined that insecurity was the major factor constraining the business activity in July 2024. Other constraining factors are high interest rate, insufficient power supply, and high/multiple taxes. Respondent firms expect the exchange rate to depreciate in all review periods except the next six months. However, they expect the borrowing rate to rise in all the periods under review. Respondents also opined that the current inflation rate of 34.19 is too high.”
The overall confidence index had slowed in July to 0.1 percent, according to records from the National Bureau of Statistics, NBS.
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