Firms in Nigeria expect borrowing rates to rise in the current month, next month, next 2 months and the next 6 months with indices of 19.2, 14.9, 14.7 and 14.3 points, respectively, according to the
Central Bank of Nigeria (CBN)
December 2020 Business Expectations Survey Report.
Similarly their expectations on level of Inflation is that average inflation rate in the next six months and the next twelve months will stand at
13.24 and 14.51 percent, respectively.
However their opinion on the control of inflation, the
respondent firms expressed dissatisfaction with the management of inflation by the government
with a negative net satisfaction index of -33.5 in December 2020.
The net satisfaction index is the proportion of satisfied less the proportion of dissatisfied respondents.
They however made preference for reduction in rates to inflation, a development that would seem furthering the growth expectations.
According to the report from the statistical department of the bank, the December 2020 Business Expectations Survey was conducted online from December 7-11, 2020
with a sample size of 1050 businesses nationwide.
It had a response rate of 91.3 per cent and the sample covered the agric services, 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.
In the business outlook, the report ssid “ The overall confidence index (CI) on the macro economy was pessimistic in
December 2020. However, respondents are optimistic in their outlook for the month of January 2021
with a confidence index of 29.4. They also expressed optimism in the overall business outlook for
February and June 2021 as shown in a greater confidence of the economy with 39.2 and 55.2 index
points, respectively. ”