The Central Bank of Nigeria (CBN) reported that the industry, services, and agriculture sectors recorded expansion during the review period, with index points of 50.5, 51.1, and 53.1, respectively.
A further breakdown of the 36 sub-sectors reviewed across these sectors showed that 21 recorded growth in economic activity, with the cement sector experiencing the highest growth. Conversely, 13 sub-sectors reported a decline, with non-metallic mineral products recording the steepest contraction. Additionally, two sub-sectors—Plastics & Rubber Products and Accommodation & Food Services—remained unchanged.
Meanwhile, the CBN’s Business Expectation Survey Report, released today, indicated that businesses remained optimistic about the macroeconomy in February, largely due to a positive outlook on exchange rates. The report also suggested that firms anticipate the Naira to appreciate in the coming months while projecting a rise in borrowing costs.
According to the CBN, the overall confidence index (CI) signaled business optimism for February 2025. All sectors expressed positive sentiment, with the industry sector showing the highest optimism. The Mining & Quarrying, as well as the Electricity, Gas & Water Supply sectors, reported the most significant expansion plans for March 2025.
Despite this optimism, businesses cited key constraints such as high interest rates (75 index points), insecurity (73.9 index points), inadequate power supply (73.8 index points), high taxes (73 index points), financial difficulties (68.5 index points), and high bank charges (67.6 index points).
On the consumer side, the CBN’s Consumer Expectation Survey Report revealed that households remained pessimistic about the macroeconomy in February, albeit with a slight improvement from January. The consumer outlook stood at -19 index points, compared to -23 in the previous month, reflecting concerns over elevated household item prices.
According to the report, consumers anticipate further increases in the cost of housing, rent, telecommunications, vehicles, and electricity over the next six months. However, consumer confidence in the broader economy is expected to improve gradually in the coming months.
Additionally, the survey indicated that households do not plan to allocate a significant portion of their income toward purchasing houses or vehicles but instead intend to prioritize spending on food and essential household items across all periods.
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