Nigerian businesses are optimistic about the naira appreciating in the first half of 2025, as per the November 2024 Business Expectation Survey (BES) by the Central Bank of Nigeria (CBN). The survey indicated that while businesses expect the naira to depreciate in the short term, they anticipate appreciation in the next six months, driven by an improved macroeconomic environment.
Despite a pessimistic outlook on various business indicators such as volume of business activities, financial conditions, access to credit, and capacity utilization, businesses are hopeful about the overall macroeconomy. The naira has faced significant devaluation against the dollar, becoming one of the worst-performing currencies globally in 2024.
However, the recent implementation of the Electronic Foreign Exchange Matching System (EFEMS) has brought more transparency and efficiency to the currency market, leading to some stability in the naira’s value. The currency appreciated against the dollar recently and also maintained stability in the black market.
The Agriculture sector showed the highest optimism in the macroeconomic outlook, with plans for expansion in the coming months. The survey covered various sectors, with the Construction sector displaying optimism in its operations. All sectors reported positive employment outlooks, with Agriculture showing the highest prospects for expansion.
In line with the positive expectations, businesses are looking to hire more workers and expand their operations. Agriculture, Mining and Quarrying, and Marketing services are among the sectors with high prospects for expansion in December 2024. Business confidence is high, with companies gearing up for growth and strategic objectives in the new year.
Overall, businesses are hopeful about the economic outlook, with plans for expansion and employment growth in the months ahead.
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