CBN predicts when Nigeria will become better to operate business

• Entrepreneurs expect that the business climate in Nigeria will improve in August 2024 and the following six months
• With a 7.6 optimism score, business owners predict better business success in August, according to a CBN report.
• The business optimism index was predicted by the top bank to reach 19.3 points during the following three months

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

A recent Central Bank of Nigeria report has found that business owners are hopeful that in August 2024 and the ensuing six months, the business environment in Nigeria would improve.

In the next three months, the business optimism index is predicted to be 19.3 points, and in the next six months, it is predicted to be 30.7 points. Photo Credit: Pixdeluxe
Source: Getty Images

The apex bank's Business Expectations report, which was made public on Wednesday, states that company owners anticipate improved business performance in August, with an optimism score of 7.6 points.

The apex bank stated that the business optimism index is expected to be 19.3 points in the next three months and 30.7 points in the following six months, The Punch reported.

“Similarly, 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 clarified that the macroeconomic outlook will be bolstered by the following industries: manufacturing, non-market services, agriculture, market services, energy, gas & water supply, mining, and quarrying.

It stated,

“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.”

In July 2024, the overall confidence index stood at 0.1 points, although it dropped by 3.0 points compared to the confidence levels reached in June 2024.

CBN records highest amount of dollars

Legit.ng reported that the Central Bank of Nigeria (CBN) has announced a notable surge in remittance inflows, which climbed to $553 million in July 2024, marking a 130% increase compared to the same period in 2023.

This was disclosed in a statement by the Acting Director of Corporate Communications, Hakama Sidi Ali.

According to Ali, the figure represents the highest monthly inflow on record and underscores the CBN's ongoing efforts to boost liquidity in Nigeria’s foreign exchange market.

Source: Legit.ng