Nigeria: Business confidence climbs to highest level so far this year in September
September 30, 2015
In September, the Business Sentiment Indicator (BSI) developed by MNI Indicators and Standard Chartered jumped from August’s 60.8 to 64.6, which marked the highest reading so far this year. The indicator continues to rest comfortably above the 50-threshold that separates contraction from expansion in business conditions.
September’s rise mainly reflects expansions in new orders, new export orders, production, order backlogs and supplier delivery times. Employment was the only main category that recorded a decline, dropping to the lowest level since January. According to the survey report, “business sentiment in 2015 has been supported by post-election euphoria,” even though the economy faced several headwinds. However, the survey report noted that, “businesses reported being increasingly concerned about the near-term outlook,” as firms are concerned about the low oil price and its impact on the government’s fiscal accounts and economic growth. In addition, the depreciation of the Nigerian naira—and subsequent price rises and lower credit availability—was another reason for concern.