A survey by the Central Bank of Nigeria (CBN) has shown that business organisations were pessimistic about the economy in November.
The Statistics Department of the CBN disclosed this in its ‘November 2020 Business Expectations Survey Report’ on Friday, December 11.
Part of the report said the highlights of the survey showed the “respondent firms expressed pessimism on the macro economy.”
According to the report, “Respondents’ outlook on volume of total order, volume of business activity, average capacity utilization and financial condition (working capital) were positive.
“Respondent firms identified insufficient power supply, competition, unfavourable economic climate, high interest rate, unclear economic laws, financial problems, unfavourable political climate, access to credit and insufficient demand as major factors constraining business activity in November 2020.
“Respondent firms expect the Naira to depreciate in the current month but expects it to appreciate in the next month, next 2 months and next 6 months.
“Inflation level is expected to rise in the next 6 and 12 months, while borrowing rate is expected to rise in the current month, next month, next 2 months and the next 6 months.
The November 2020 Business Expectations Survey was conducted from November 9-13, 2020 with a sample size of 1050 businesses nationwide.
A response rate of 89.5 percent was achieved and the sample covered the agric./services1, manufacturing, wholesale/retail trade and construction sectors.
The respondent firms were made up of small, medium and large corporations covering both import-oriented and export-oriented businesses.