Halkalı Halı Yıkama Beylikdüzü Halı Yıkama Bahçeşehir Halı Yıkama seocu
Economy

Poor power supply, low access to credit, high interest rate constraining Nigerian businesses

Insufficient power supply, high interest rate, unfavourable economic climate and financial problems are among major factors constraining business activity in Nigeria, according to businesses surveyed in the Central Bank of Nigeria’s Business Expectations Survey Report for March 2019.

The firms also identified unfavourable political climate, unclear economic laws, insufficient demand and access to credit as constraining factors.

According to the CBN report released Thursday, respondent firms expected the naira to appreciate in March, April and the next 12 months. They also expected the level of inflation to moderate in both next six months and the next 12 months, and the borrowing rates to rise in current month, next month and the next 12 months.

High Interest Rates

The Business Expectations Survey (BES) was carried out from March 11 to 15, 2019 with a sample size of 1,050 businesses nationwide. The respondent firms were made up of small, medium and large corporations covering both import- and export-oriented businesses.
CBN said a response rate of 96.2 percent was achieved, and the sample covered the services, industrial, wholesale/retail trade, and construction sectors.

The respondent firms expressed optimism on the macro economy, while their outlook on the volume of total order, business activity and financial conditions (working capital) were positive during the review period.

READ ALSO: NIGERIA IS AT THE BOTTOM OF ALMOST EVERYTHING

At 28.2 index points, respondent firms expressed optimism on the overall confidence index (CI) on the macro economy. The businesses’ outlook for April 2019 showed greater confidence on the macro economy with 64.8 index points.

READ MORE:  Housing Bills that 9th National Assembly Must Not Ignore

High Interest Rates

The optimism on the macro economy in the month of March was driven by the opinion of respondents from services (16.8 points), industrial (8.6 points), wholesale/retail trade (2.3 points) and construction sectors (0.5 points), whereas the major drivers of the optimism for next month were services (37.0 points), industrial (19.4 points), wholesale/retail trade (6.2 points) and construction sectors (2.2 points).

The positive outlook by type of business was driven by businesses that are neither import- nor export-oriented (20.3 points), both import- and export-oriented (4.1 points), import-oriented (3.5 points), and those that are export-related (0.2 points).

All the four sectors expressed optimism on own operations in the review month. However, respondents from the services sector expressed the greatest optimism on own operation with an index of 7.1 points, followed by the industrial sector with 3.3 points, the wholesale and retail trade with 2.0 points and the construction sector with 0.5 points, respectively.

READ ALSO: NIGERIA NEEDS GROWTH TO DEFUSE POVERTY TIME BOMB

More respondent firms were satisfied with the management of inflation by the government with a net satisfaction index of 8.0 percent in March 2019. The net satisfaction index is the proportion of satisfied less the proportion of dissatisfied respondents.

Respondents’ outlook on the volume of total order and business activity in March 2019 remained positive, as the indices stood at 15.1 and 15.4 points, respectively. Similarly, respondents were optimistic in their outlook on financial conditions (working capital) and average capacity utilisation as the indices stood at 12.8 and 20.0 index points, respectively.

READ MORE:  EU unveils solar tree, contributes 165m euros for renewable energy in Nigeria

Source: By Iheanyi Nwachukwu

aihs
Previous ArticleNext Article

Leave a Reply

Your email address will not be published. Required fields are marked *

mersin escort bayan mersin escort bayan mersin escort bayan mersin escort bayan erotik film izle erotik film malatya escort bayan malatya escort bayan malatya escort bayan malatya escort bayan
Translate »
escort sakarya escort edirne escort kayseri escort konya escort ısparta escort bornova
Share via
%d bloggers like this:
Kıbrıs gece kulüpleri