High Bank Charges, Poor Infrastructure Among Top Business Constraints in December — CBN
A survey by the Central Bank of Nigeria (CBN) has identified high bank charges, poor infrastructure, an unfavorable economic climate, insecurity, and limited access to credit as the major challenges businesses faced in December 2024.
However, the report, titled “Business Expectation Survey (BES),” revealed that despite these constraints, firms remained optimistic about the overall macroeconomic conditions.
According to the survey, this optimism was driven by a positive outlook on the exchange rate, volume of business activities, and total orders. It stated:
“Respondents cited high bank charges, poor infrastructure, an unfavorable economic climate, insecurity, and credit access as the top business constraints for December 2024.
“Despite these challenges, firms expressed optimism about the macroeconomy, influenced by expectations of a stable exchange rate, increased business activity, and higher order volumes.”
The report further noted that the overall confidence index (CI) on the macroeconomy indicated strong business optimism in December 2024. This confidence was shared across all sectors, with businesses expecting improved conditions in the months ahead.
Additionally, firms anticipated a stronger naira and planned to hire more workers in January 2025. Sectoral analysis showed that the agriculture sector had the highest potential for expansion in the coming month.
High Inflation Perception Among Small Businesses
Meanwhile, the CBN’s Inflation Expectation Survey Report, also released yesterday, found that 83.9% of small businesses perceived inflation to be high in December 2024.
The report further revealed that households earning between N150,001 and N200,000 per month were most affected by inflation. Respondents attributed rising inflation to energy costs, exchange rate fluctuations, transportation costs, and insecurity.
Despite these concerns, businesses and households expect inflationary pressures to gradually ease in the coming months.