The Central Bank of Nigeria (CBN) has revealed that insecurity, high interest rates, and high/multiple taxes were the primary constraints faced by businesses in August 2024. These factors were identified in the CBN’s Business Expectation Survey (BES) report for the month.
Despite these challenges, the report also indicated a positive outlook for business activities and employment in the coming months. Respondent firms expressed optimism about the macroeconomy and anticipated improved business conditions. The sectors with the highest prospects for employment were identified as Agriculture, Industry, and Services.
The overall confidence index (CI) stood at 0.9 index points, suggesting that respondent firms were optimistic about the future. Mining, Quarrying, Electricity, Gas & Water Supply, Non-Market Services, Market Services, Agriculture, and Manufacturing were seen as the key drivers of this optimism.
The report further revealed that respondents were optimistic about the volume of business activities and employment in the coming months. The positive outlook was particularly strong for Mining, Quarrying, Electricity, Gas & Water Supply, Agriculture, and Non-Market Services.
The positive Business Activity Index and Employment Index suggest the possibility of job growth in the coming months. This encouraging trend is expected to support economic stability and increase job opportunities in various industries.
However, respondent firms identified several factors limiting their business activity, with insecurity being the most significant constraint followed by high interest rates, high/multiple taxes, an unfavorable economic climate, and insufficient power supply.
The CBN’s BES report provides valuable insights into the challenges and opportunities facing businesses in Nigeria. By understanding these factors, policymakers can take steps to address the constraints and create a more conducive environment for economic growth and job creation.
