A recent survey conducted by the Central Bank of Nigeria (CBN) identifies high interest rates as the primary challenge faced by businesses in February. According to the survey, 75% of the respondents cited high interest rates as a major obstacle to their operations. Insecurity and insufficient power supply followed closely, with 73.9% and 73.8% of respondents respectively highlighting these issues as significant constraints.
Challenges Facing Nigerian Businesses
The findings of the survey underscore the ongoing struggles businesses face in Nigeria, where economic stability is affected by a combination of financial and infrastructural challenges.
High Interest Rates
High interest rates increase the cost of borrowing, which can stymie business growth and investment. These rates are a significant hurdle for many businesses trying to expand or sustain their operations.
Insecurity and Power Supply
Meanwhile, insecurity and unreliable power supply continue to hinder business productivity and operational efficiency. These factors contribute to increased operational costs and reduced profitability.
Need for Urgent Policy Measures
These challenges suggest an urgent need for policy measures that will address financial burdens and infrastructure deficiencies to bolster the business climate in Nigeria. The report provides critical insights for policymakers aiming to create a more conducive environment for business operations and economic development.
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