As firms expect borrowing rates to rise
…Nigerians finger energy, 2 others as top inflation drivers
…Anticipate slight increase in price next months
The Industry and Agriculture sectors have expressed highest optimism in the nation’s macroeconomy in the next six months with a doubling confidence index of 48.3 and 42.8 points respectively.
The Central Bank of Nigeria, CBN, disclosed this today in its Business Expectation Survey Report which showed that businesses confidence stood at 20.7 index points in June and it is projected to persist in the next six months , reaching 41.3 index points.
“The Confidence Index stood at 20.7 index points in the current month, reflecting the optimism of respondents regarding the Macroeconomy.
“This optimistic trend is projected to persist over the next six months, steadying at 41.3 index points.
“All the sectors expressed optimism on the business outlook of the macroeconomy in the current month with the Industry sector leading at 23.1 index points.
“The optimistic trend is expected to continue into the next six months with the confidence index of the Industry and Agriculture sectors more than doubling in the next six months, 48.3 and 42.8 index points, respectively.
“The Services sector also recorded improved levels of optimism across different time periods.”
The report showed that respondents identified high interest rate (75.6), Insecurity (75.2) and Insufficient power supply (74.3) as the top three business constraints in June 2025, pointing to concerns around factors that directly impact operational stability and profitability.
“This suggests that business constraints are more focused on economic and financial risks than political challenges in the review period,” CBN said.
The report also indicated that respondents expect the Naira to US Dollar exchange rate to appreciate across the review periods, as indicated by a positive index and anticipated an increase in the borrowing rate during the same periods.
Meanwhile in its Inflation Expectations Survey Report for June, released today, the CBN said that Nigerians fingered energy, exchange rate and transportation as three major drivers of inflation in the country.
“Respondents (Businesses and Households) identified energy, exchange rate, and transportation as the top three inflationdrivers.
“However, natural disaster, activities of middlemen and infrastructural challenges were perceived as less significant contributors to inflation drivers in the review period.
“The percentage of respondents (71 percent) who perceived that inflation is high declined in June 2025, compared to those of the previous month (75.3 percent).
“This perception primarily hinges on the opinion of household respondents which declined to(69.5 percent) in the month under review.
“Similarly, most business respondents anticipated the level of inflation to remain stable in the next month and next 3 months.
“Most households however, anticipated the level of inflation to increase in the next 3months and next 6 months.”
Households also anticipated slight increase in prices in coming months.
The CBN’s Households Expectations Survey Report released today stated: “Consumer sentiments on price changes of selected items showed that prices of the items are perceived to be high (above zero).
“The decline in overall sentiments from 39.5 index points in May 2025 to 38.2 index points in June 2025 is driven by reduced pessimism across key items.
“From May to June 2025, the perception of price increases for food & other household items declined from 16.7 index points to 14.6 index points among consumers, though consumers still believe that prices are still high.
“ However, consumers’ view about price hikes for Appliances/Consumer Durables Savings, Education and Investment moderated further in June 2025, indicating a potential easing in inflationary concerns.
“Consumers however anticipate slight increase in the prices of these items in the next three to six months compared to the current level.”
“In June 2025, the overall consumer sentiment stood at -13.2 index points, reflecting weak pessimism among the consumers.
“The Economic Condition index further improved to -11.6 index points in June 2025 from -12.6 index points in May 2025, and also above -30.6 index points recorded in January 2025 indicating continued easing of pessimism in the broader economy.
“Family Financial Situation index at -22.3 points in June 2025 maintained a more pessimistic level than in May 2025.
“Family Income sentiment recorded -5.9 index points in June 2025, maintaining about the same pessimistic level (5.7 points) reported in May 2025.”
BY DAMILOLA ADELEKE | JULY 19, 2025
Adeleke Damilola (ACTION) is a versatile content writer with expertise in news writing and a seasoned media professional and broadcast specialist. Currently serving as News Editor for DNews Info, Damilola is also the CEO of the ACTION brand, committed to shaping lives and establishing a legacy of excellence for present and future generations.
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