Godwin Emefiele, CBN Governor

Business owners in Nigeria have expressed optimism that the naira will appreciate between March and June 2020, the Central Bank of Nigeria (CBN) March 2020 Business Expectations Survey report released on Wednesday has indicated.

The CBN explained that the survey which was conducted before the current coronavirus pandemic, which has adversely impacted the economy, had a sample size of 1050 businesses nationwide.

Meanwhile, the naira depreciated to N360/$ at the CBN official foreign exchange window, N380/$ at the investors segment of the market and over N400/$ at the parallel market.

It explained that the respondent firms confidence indices stood at 7.8, 17.0 and 23.7 and 30.6 index points respectively.

They expect the cost of credit to rise with the next six months and inflation rate in the next six months and the next twelve months to stand at 11.66 and 11.75 percent, respectively.

The respondents were dissatisfied over way government is managing the country’s inflation with a negative net satisfaction index of -0.3 in March 2020.

“At 6.6 index points, the overall confidence index (CI) indicated respondents’ optimism on the overall macro economy in the month of March 2020. The business outlook for April, May and September 2020 showed greater confidence in the economy, with 48.3, 45.4, and 50.3 index points, respectively,” the report stated.