By The Central Bank of Nigeria’s (CBN) Business Expectation Survey (BES) for October reveals a decline in the Overall Confidence Index (OCI) for the current month, November, and the next six months. The OCI dropped to 1.4, 4.8, and 21.8 points respectively in October, down from 3.2, 6.2, and 29 points in September.
According to the CBN, the decline in business confidence is largely due to firms’ concerns over further depreciation of the naira by year-end. “The overall confidence index on the macro economy shows optimism among businesses in October 2024,” the CBN noted, adding that businesses anticipate depreciation in the naira over the next three months but expect it to appreciate within six months.
Top constraints cited by firms include high interest rates, insecurity, multiple taxes, inadequate power supply, unfavorable economic conditions, and financial challenges. Despite these concerns, most sectors—except for the Industry Sector—expressed optimism about their own operations and expect increased business activity, total orders, improved financial conditions, and credit access in October.
Looking ahead, businesses plan to expand hiring in November, especially in the Agriculture Sector, which leads in employment and growth prospects. However, hiring in the Construction Sector may remain flat.
