Business owners across the country have identified high interest rates, insecurity, insufficient power supply, high taxes, financial problems and high bank charges as top constraints faced by businesses in February 2025
This is contained in the Central Bank of Nigeria’s latest report on Business Expectations Survey for February 2025, recently released.
The report comes amid a drop in the inflation rate from 23.18 percent in February relative to the January 2025 headline inflation rate of 24.48 percent.
The survey identified high bank charges as the biggest challenge faced by businesses operating in the country as 76.6 percent of respondents attesting to it.
Closely followed by high interest rates as confirmed by 75 percent of the respondents, while insecurity was next with 73.9 percent, insufficient power supply recorded 73.8 percent, and high taxes with 73 percent.
Respondents identified financial challenges as taking 68.5 percent.
The report identified the macro economy for the current month as driven by respondents from all regions except the Southeast.
Despite the challenges, businesses hope to employ more workers in March 2025.
An analysis of the sectors showed that the Construction sector had the highest prospect for employment at 23.6 percent in March, while the mining and quarrying sector had the highest prospect for expansion in March 2025.
The respondents hoped to expand their businesses to the tune of 76.5 percent, while they expect the naira to appreciate across all reviews.
They also anticipate that the borrowing rate will rise during March 2025.
Recall that NBS had reported that headline inflation rate decreased by 1.30 percent in February compared to the January 2025 headline inflation rate.
NBS said Food inflation rate in February 2025 was 23.51 percent on a year-on-year basis.
According to the Bureau, this was 14.41 percent lower compared to the rate recorded in February 2024 (37.92 percent).
It said that the significant decline in the food inflation figure is technically due to the change in the base year. However, on a month-on-month basis, NBS said the food inflation rate in February 2025 was 1.67 percent.