According to the Central Bank of Nigeria (CBN) Business Expectancy Survey in October 2020, companies expect inflation to rise further and the Naira rate to fall in November.The CBN Business Expectation Survey was conducted online from 12–16 October 2020 to October 2020, covering a sample size of 1050 businesses across the country.
The response rate was 89.4 percent with models from the agriculture / services, manufacturing, wholesale / retail and manufacturing sectors. Defenders include small, medium and large firms.The latest inflation rate released by the Nigerian Bureau of Statistics (NBS) is 13.71%, while the Naira is trading at N458 / $ 1.Defendants expect Naira to depreciate in the current month, but will appreciate it in the coming months, the next two months and the next six months.
Inflation is expected to rise in the next six to 12 months. The report said that along with this, loan rates are expected to increase in the current month.Key factors hindering business operations in October were identified as insufficient power supply, financial problems, high interest rates, competition, unfavorable economic environment, unclear economic laws, unfavorable political climate, equipment availability and equipment shortages . . . 2020. “
At -1.5 index points, the report indicates that the overall reliability index (CI) for the macro economy is optimistic by October 2020.However, respondents were optimistic about the November outlook at 37.9. They are also optimistic about the overall business outlook for December 2020 and April 2021, reflecting the true viability of the economy at 46.1 and 59.7 respectively.
Agri / services (20.0 points) and manufacturing (13.4 points) are the main reasons for optimism next month.Further analysis showed that non-import or export-oriented (-2.2 points) import-based (-0.3 points) businesses led to a negative trading outlook during the month under review.