Businesses in Nigeria think that not feeling safe is their biggest problem. This info comes from a study done by the Central Bank of Nigeria (CBN).
The study is called, “Business Expectation Survey” and was shared by the CBN’s stats department.
According to the study, feeling unsafe was the number one issue for businesses. Other problems included high interest rates, not enough power, too many taxes, extortion, corruption, and a tough economy.
The study says, “Companies said feeling unsafe was the main problem for doing business in July 2024. Other issues are high interest rates, not enough power, and too many taxes.”
Nigeria has had safety issues for a long time, starting with the Boko Haram in the Northeast. Things got better over time, but new threats have popped up in different parts of the country.
Now, problems like banditry and kidnapping hurt the Northeast and Northcentral areas, which messes up farming and food supply.
In the Southeast, fights for leaving Nigeria make things unsafe, and regular sit-down orders stop business activities.
Because of more safety problems, President Tinubu is thinking about a new kind of local policing that some find controversial.
Business Confidence across Northern Nigeria
When it comes to how businesses feel about the future, companies in the North are more hopeful about the next month, three months, and six months than those in the South.
In the North, only the North Central region felt less positive about business. In the South, all regions felt less optimistic about the near future.
Northeast region – Businesses in the Northeast felt good about their chances this month, with a Confidence Index of 23.6 points.
They also felt positive about next month, the next three months, and the next six months, with scores of 30.9, 42.0, and 48.2 points.
Northwest – Companies in the Northwest also felt optimistic for this month with a Confidence Index of 2.4 points.
They were hopeful for next month, three months, and six months from now, with scores of 0.9, 20.6, and 27.4 points.
North Central – Businesses here were not so positive this month, with a Confidence Index of -1.7 points.
Still, they were more hopeful for next month, three months, and six months from now, with scores of 10.6, 16.6, and 31.5 points.
South-South region – Businesses in the South-South were less optimistic this month, scoring -6.5 points.
However, they were more hopeful for next month, three months, and six months, with scores of 2.3, 12.4, and 21.7 points.
Southwest – Companies in the Southwest were also not so positive this month with a score of -1.5 points.
But, they felt hopeful for the future, with scores of 9.6, 19.8, and 34.0 points for next month, three months, and six months.
Southeast – In the Southeast, businesses felt very negative this month with a score of -18.9 points.
They also felt negative for next month and three months, scoring -10.0 and -0.6 points. But, they were hopeful for six months from now, scoring 19.4 points.