Many businesses in Nigeria are optimistic about surviving the country’s economic setbacks over the next few months.
But they are groaning about high interest rates, insecurity, and poor power supply, which is limiting their operations.
This was revealed in the Business Expectation Survey conducted by the Central Bank of Nigeria.
Nigeria is facing an economic reform, which has led to a high cost of operation since Bola Ahmed Tinubu’s government came on board.
Despite high inflation at 23.18% high energy costs, an epileptic power supply, and insecurity, businesses say they have no options other than adjusting to the direction of the economy.
According to the survey, the optimism of the outlook for the period, which covers March, April, May, June, July, and August, is driven by businesses operating in the South East.
“Respondent interest rate, insecurity, insufficient power supply, high taxes, financial problems, and high bank charges as top business constraints”, the survey revealed.
On a points basis, 75% of firms voted high interest rate as a major concern, while 73.9% pointed to insecurity as a major constraint.
Insufficient power supply and high taxes were at 73.8% and 73% respectively, while 68.5% of the businesses pointed to financial problems as a major setback.
The companies, however, expect the naira to appreciate, but they project that the borrowing rate will be on the rise.