Nigerians are fast losing confidence in the economy —CBN report

The Central Bank's Consumer Expectations Survey (CES) Report for the first quarter of this year suggests that Nigerians and individual companies are rapidly losing faith in the economy.

According to the document, consumer confidence in the economy worsened dramatically between the last quarter of 2019 and the first quarter of this year, from 3.3 points to -0.3 between periods.

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The level of corporate optimism in the country's macroeconomic situation fell to 6.6 points in March 2020, compared with 26.6 recorded last month.

Fixing the negative trend to the country's harsh economic conditions, the Central Bank of Nigeria (CBN) says that consumers believe, however, that the value of Naira will increase next year, despite fearing that the level of unemployment will increase in the period.

"The general outlook for consumer confidence dropped in the first quarter of 20, as consumers were pessimistic. The -0.3 point index was 5.1 points lower than the index in the corresponding period of 2019.

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Read too: Nigeria's dying refineries swallowed N218.2 billion in 2019, recording a loss of N149.2 billion

“Respondents attributed this unfavorable outlook to declining economic conditions. Consumers, however, were optimistic in their outlook for the next quarter and the next 12 months, with rates of 28.9 and 43.3 points, respectively ”, states the report.

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CBN linked the positive expectation above to the Nigerians 'belief that households' net income would improve, that they would have a chance to save a little or more than enough to save.

They predict that the country's economy will improve in the next three months starting in April and also next year.

Regarding the expectations of loans and exchange rates, the document says that "with rates of 2.2 and 11.7 points, respectively, consumers expect the loan rate to rise, but expect the naira to appreciate in the next 12 months ".

With regard to unemployment, he mentions that “the unemployment over the next 12 months, the index remained positive at 27.7 points in the first quarter of 20, indicating that consumers generally expect the unemployment rate to rise next year. "

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Ronald Adamolekun

Ronald Adamolekun is a creative writer with mixed experience in fields as diverse as data journalism, financial reporting and editing.

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Ronald Adamolekun

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