Power, in­ter­est rate, oth­ers slowed busi­ness in 2018

The Punch - - MONEY - Nike Popoola

BUsi­ness ac­tiv­i­ties were slowed down by an in­suf­fi­cient power sup­ply, high-in­ter­est rates and other chal­lenges in 2018 fi­nan­cial pe­riod.

This was dis­closed in the ‘monthly busi­ness ex­pec­ta­tions sur­vey re­port’ by the Cen­tral Bank of Nige­ria’s statis­tics Depart­ment in De­cem­ber 2018.

The CBN, in the re­port, stated that “firms iden­ti­fied in­suf­fi­cient power sup­ply, high­in­ter­est rates, un­favourable eco­nomic cli­mate, fi­nan­cial prob­lems, un­clear eco­nomic laws, un­favourable po­lit­i­cal cli­mate, and in­suf­fi­cient de­mand as the ma­jor fac­tors con­strain­ing busi­ness ac­tiv­ity in the cur­rent month.”

it, how­ever, added that the re­spon­dent firms ex­pected the naira to ap­pre­ci­ate, and in­fla­tion and bor­row­ing rates to rise in Jan­uary 2019.

The highlights of the out­come of the busi­ness ex­pec­ta­tions sur­vey in De­cem­ber 2018 also showed that re­spon­dent firms ex­pressed more op­ti­mism on the macroeconomy in De­cem­ber 2018.

it stated that re­spon­dents’ out­look on the vol­ume of the to­tal or­der, busi­ness ac­tiv­ity and fi­nan­cial con­di­tions (work­ing cap­i­tal) were pos­i­tive dur­ing the re­view pe­riod, and more op­ti­mistic when com­pared with the pre­vi­ous month.

The De­cem­ber sur­vey was car­ried out from De­cem­ber 10 to 14, 2018, with a sam­ple size of 1,050 busi­nesses na­tion­wide.

A re­sponse rate of 98.6 per cent was achieved, and the sam­ple cov­ered the ser­vices, in­dus­try, whole­sale/re­tail trade, and con­struc­tion sec­tors.

The re­spon­dent firms were made up of small, medium and large or­gan­i­sa­tions cov­er­ing both im­port- and ex­por­to­ri­ented busi­nesses.

Re­spon­dents’ out­look on the vol­ume of to­tal or­der and busi­ness ac­tiv­ity in De­cem­ber 2018 re­mained pos­i­tive, as the in­dex stood at 22.9 and 22.7 points, re­spec­tively when com­pared to 17.4 and 18.7 points, re­spec­tively recorded in the pre­vi­ous month.

equally, re­spon­dents’ out­look on fi­nan­cial con­di­tions (work­ing cap­i­tal) and av­er­age ca­pac­ity util­i­sa­tion im­proved as the in­dices stood at 21.4 and 25.5 in­dex points, when com­pared with the 13.0 and 20.8 points, re­spec­tively recorded in Novem­ber 2018.

Re­spon­dents were rel­a­tively more op­ti­mistic about the ac­cess to credit in the re­view month, with an in­dex of 2.2 points.

All sec­tors ex­cept the con­struc­tion sec­tor ex­pressed op­ti­mism on own op­er­a­tions in De­cem­ber 2018.

Re­spon­dents from the con­struc­tion sec­tor ex­pressed com­par­a­tively less op­ti­mism on own op­er­a­tions in the re­view month with an in­dex of 0.0 points, when com­pared with the 0.1 points re­ported in Novem­ber 2018.

•L-R: Head, Trea­sury, Meris­tem Wealth Man­age­ment Limited, Mr Taiwo Yusuff; Board Mem­ber, In­vest­ment Per­for­mance Com­pany of Nige­ria Limited, Mrs Sade Odunaiya; Man­ag­ing Di­rec­tor, Meris­tem Wealth Man­age­ment Limited, Mr Su­lai­mon Ade­dokun; Head, Wealth Man­age­ment, Meris­tem, Wealth Man­age­ment Limited, Mrs Damilola Has­san; and Lead Con­sul­tant on Global In­vest­ment Per­for­mance Stan­dards, Mr Akin Adeniyi, dur­ing the Meris­tem GIPS com­pli­ance dec­la­ra­tion in La­gos …on Fri­day. Photo: Stan­ley Ogidi

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