Nigerian businesses expect the naira to weaken between now and December but it will appreciate next year, according to a Business Expectations survey by the central bank.
The poll of 1,600 firms showed that they expect the naira to “depreciate in the current month, next month and next three months but appreciate in the next six months,” the Central Bank of Nigeria said in a report published on its website. The survey was conducted in the third week of July.
The local currency has lost about 70% of its value against the dollar since June 2023, when it was allowed to trade more freely in a bid to restore investor confidence in the economy.
The business expectations survey is a monthly check-up on Nigeria’s leading firms drawn across sectors including manufacturing, construction, energy and services. The central bank reintroduced the report alongside other publications this month as it seeks to broaden public access to economic indicators and foster transparency.
Along with the weakening currency, the firms identified insecurity, high interest rate, insufficient power supply, multiple taxes and corruption as the biggest constraints they face operating in Africa’s most populous nation.
“Their perception of inflation indicated that they consider the current inflation rate of 34.19% too high,” the central bank said, in reference to June inflation data. The nation’s annual inflation decelerated for the first time in almost two years to 33.4% in July, data released last week showed.
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