ADVERTISEMENT
TechEconomy
Monday, June 2, 2025
No Result
View All Result
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
      • Accessories
      • Phones
      • Laptop
      • Gadgets and Appliances
      • Apps
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
      • Broadband
    • Mobility
    • Environment
    • Travel
    • Commerce
    • StartUPs
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • Appointment
    • EventDIARY
    • Editorial
  • Apply
  • TecheconomyTV
  • Techeconomy Events
  • BusinesSENSE For SMEs
  • TBS
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
      • Accessories
      • Phones
      • Laptop
      • Gadgets and Appliances
      • Apps
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
      • Broadband
    • Mobility
    • Environment
    • Travel
    • Commerce
    • StartUPs
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • Appointment
    • EventDIARY
    • Editorial
  • Apply
  • TecheconomyTV
  • Techeconomy Events
  • BusinesSENSE For SMEs
  • TBS
No Result
View All Result
Tech | Business | Economy
No Result
View All Result
Podcast

Home » How Naira Devaluation, Subsidy Removal Weaken Business Confidence in Nigeria

How Naira Devaluation, Subsidy Removal Weaken Business Confidence in Nigeria

Adetunji Tobi by Adetunji Tobi
October 30, 2024
in News
0
Naira Devaluation
Olayemi Cardoso, Governor Central Bank Nigeria.

Olayemi Cardoso, Governor Central Bank Nigeria.

RelatedPosts

SIFAX Group

SIFAX Group Honoured with Distinguished Gender Inclusion Award  

June 2, 2025

Interswitch, PKB to Boost Lagos Smart Health Information Platform

May 31, 2025

A report by Standard Bank’s Africa has underscored how naira devaluation and the removal of fuel subsidies have diminished business confidence in Nigeria.

The Africa Trade Barometer is an annual publication that evaluates the business landscape across ten African countries, analyzing factors such as macroeconomic stability, trade openness, access to finance, and infrastructure to provide insights into business conditions across the continent.

According to the report, which surveyed 2,258 businesses across 10 African countries, Nigeria recorded the most significant drop in business sentiment, reflecting the challenges posed by volatile exchange rates and inflation.

The report states: “Business confidence across the ten SB ATB markets has remained stable despite challenging economic conditions, with the average confidence index rising slightly from 58 in May 2023 to 59 in August 2024.

“Five countries saw increased business confidence, while three remained unchanged, and two experienced declines. Ghana recorded the most significant improvement in its business confidence index, jumping from 47 to 55, driven by expectations of stronger economic growth and improved forecasts for 2024 and 2025.

“Meanwhile, Nigeria saw the most significant decline, with confidence dropping due to currency volatility and the removal of fuel subsidies, leading to inflation and higher living costs.

“Overall, optimism about business growth, customer demand, and economic recovery remains prevalent, with 80% of surveyed businesses expecting revenue growth.

“However, concerns over high taxation and inflation persist across all markets, reflecting ongoing challenges as governments pursue fiscal reforms and debt management strategies.”

Accordingly, the Central Bank of Nigeria’s decision to liberalize the exchange rate system in June 2023 caused the naira to lose 36% of its value, aggravating dollar shortages in the economy. Thus, businesses are struggling to access the foreign currency needed for imports, leading to increased operational costs and disruptions in cross-border trade.

The report added that many businesses have also faced difficulties obtaining trade credit due to currency instability, creating liquidity constraints.

The removal of fuel subsidies, another key policy shift highlighted in the report, has further compounded the economic challenges.

The report explains that subsidy removal led to higher fuel prices, driving inflation and eroding consumer purchasing power. Businesses surveyed in Nigeria reported increased operational costs, especially in logistics, making it harder to maintain profit margins.

“Nigeria experienced the largest decline in business confidence among surveyed businesses. This was primarily due to the significant depreciation of the naira.

“The primary driver of this was the liberalization of the exchange rate by the central bank to consolidate the multiple exchange rate systems into a unified market. This aimed to let supply and demand dictate the rates. However, in June 2023, the naira fell further by 36% in the official market, showing notable devaluation amidst dollar scarcity and market unrest.

“Efforts to stabilize the naira were further compromised by the removal and later partial reinstatement of the fuel subsidy, which stoked inflation and sparked nationwide protests over increased living costs.”

Despite these difficulties, the report reveals that businesses remain cautiously optimistic about future growth, with many hoping that ongoing economic reforms will stabilize the macroeconomic environment.

The report noted: “Countries such as Uganda, Ghana, Tanzania, Angola, South Africa, and Nigeria are expected to see improvements in real GDP growth in 2024 and into 2025.”

The Stanbic IBTC Purchasing Managers’ Index (PMI) for September showed that business conditions in the country continued to remain weak at 49.8, a below-50 reading for the third consecutive month.

According to the report, the cost of inputs for businesses rose at the sharpest rate in six months as output decreased for the month. The report noted that the weakness of the naira for the month, coupled with an increase in petrol prices, exacerbated transportation and logistics costs, which were passed on to consumers.

Furthermore, the PMI report published by the Central Bank of Nigeria (CBN) showed that for business activities in September 2024, the composite PMI reached 50.7, indicating an expansion in economic activities for the second consecutive month.

This means that while the report by Stanbic IBTC showed contraction, the CBN report indicated expansion for September 2024.

Loading

Advertisements
MTN ADS

Author

  • Adetunji Tobi
    Adetunji Tobi

    Tobi Adetunji is a Business Reporter with Techeconomy. Contact: adetunji.tobi@techeconomy.ng

    View all posts
0Shares
Previous Post

Wasoko and MaxAB Appoint Mo Elshenawy as Independent Director, Technical Advisor

Next Post

Four Rivers State Students Fly Nigeria’s Flag, Bag Double Awards at Technovation Girls Summit

Adetunji Tobi

Adetunji Tobi

Tobi Adetunji is a Business Reporter with Techeconomy. Contact: adetunji.tobi@techeconomy.ng

Related Posts

SIFAX Group
News

SIFAX Group Honoured with Distinguished Gender Inclusion Award  

by Destiny Eseaga
June 2, 2025
0

SIFAX Group has been honoured with the Distinguished Gender Inclusion Award at the just-concluded 2025 Women in Maritime and Shipping...

Read more
Interswitch partners with PKB

Interswitch, PKB to Boost Lagos Smart Health Information Platform

May 31, 2025
Aminu Maida | NCC } Telecoms Tariff adjustment | USPF | e-Health Project

NCC Boosts Telemedicine in Nigeria, Commissions Ondo e-Health Project

May 30, 2025
UK Minister for Africa in Nigeria

PARTNERSHIP: UK Minister for Africa Lord Collins Visits Nigeria

May 30, 2025
Glo Digital Village | Huawei

Glo, Huawei partnership Bring FG’s Digital Village Project to Live

May 30, 2025
Essential cybersecurity measures for Nigerian SMBs

Essential cybersecurity measures for Nigerian SMBs

May 30, 2025
Next Post
Rivers State Girls at Technovation World Summit

Four Rivers State Students Fly Nigeria's Flag, Bag Double Awards at Technovation Girls Summit

Leave a Reply Cancel reply

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

I agree to the Terms & Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Techeconomy Podcast

Techeconomy Podcast
Techeconomy Podcast

Infowave is brought to you by TechEconomy. Every week we will bring new stories from startups and influencers who are shaping and changing the world we live in. We’ll also bring you reports on topics you should know.

Follow us @techeconomyng for more.

TECH TALK EPISODE 2
byTecheconomy

PRODUCTIVITY AND WORK-Life Balance

TECH TALK EPISODE 2
TECH TALK EPISODE 2
May 22, 2025
Techeconomy
CYBERSECURITY ESSENTIALS
April 24, 2025
Techeconomy
Digital Marketing Trends and strategies for 2025 and beyond
February 27, 2025
Techeconomy
Major Lesson for Techies in 2024 and Projections for 2025
December 6, 2024
Techeconomy
Major Lessons for Techies in an AI-Driven World | Techeconomy Business Series Highlights
November 26, 2024
Techeconomy
Maximizing Profitability Through Seasonal Sales: Strategies For Success
November 8, 2024
Techeconomy
Techeconomy Business Series
October 15, 2024
Techeconomy
PRIVACY IN THE ERA OF AI: GETTING YOUR BUSINESS READY
May 30, 2024
Techeconomy
Unravel the Secrets of Marketing Everywhere All At Once with Isaac Akanni from Infobip | Infowave Podcast Episode 1
February 9, 2024
Techeconomy
The Role of Ed-tech in Life Long Learning and Continuous Education
October 19, 2023
Techeconomy
Search Results placeholder

WHAT IS TRENDING

https://www.youtube.com/watch?v=g_MCUwS2woc&list=PL6bbK-xx1KbIgX-IzYdqISXq1pUsuA4dz

Follow Us

  • About Us
  • Contact Us
  • Careers
  • Privacy Policy

© 2025 Techeconomy - Designed by Opimedia.

No Result
View All Result
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
      • Accessories
      • Phones
      • Laptop
      • Gadgets and Appliances
      • Apps
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
      • Broadband
    • Mobility
    • Environment
    • Travel
    • Commerce
    • StartUPs
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • Appointment
    • EventDIARY
    • Editorial
  • Apply
  • TecheconomyTV
  • Techeconomy Events
  • BusinesSENSE For SMEs
  • TBS

© 2025 Techeconomy - Designed by Opimedia.

Translate »
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.