A staggering 85.5% of large businesses in Nigeria consider inflation levels to be high, underscoring the persistent economic pressures facing enterprises across the country, according to the Central Bank of Nigeria’s (CBN) Inflation Expectations Survey (IES) for January 2025.
The sentiment is echoed across business sizes:
– 78.2% of medium-sized businesses
– 77.6% of small businesses
– 80.9% of micro businesses
The report noted that large businesses feel the impact of inflation the most, likely due to their exposure to macroeconomic shifts affecting pricing, investment, and employment decisions.
Businesses cited energy costs, exchange rate fluctuations, transportation expenses, and interest rates as key factors fueling inflation. These rising costs continue to shape economic outlooks and financial planning across different sectors.
The National Bureau of Statistics (NBS) reported that Nigeria’s inflation rate hit 34.80% in December 2024, further compounding economic challenges.
The survey found that inflation concerns vary by location:
– 83.9% of urban dwellers perceive inflation as high.
– 82.8% of rural dwellers share this view.
Higher living costs in cities—especially for housing, transportation, and utilities—are likely driving stronger inflation concerns among urban residents.
Households earning between N150,001 – N200,000 per month reported the highest inflation concerns, highlighting the financial strain on Nigeria’s middle class. The erosion of purchasing power continues to impact spending patterns and savings.
Despite prevailing concerns, businesses and households anticipate a slight drop in inflation over the next six months, prompting more cautious spending habits.
Between December 2024 and January 2025, businesses’ inflation concerns declined slightly:
– December 2024: 80.6% of businesses perceived inflation as high.
– January 2025: 79.6% of businesses held the same view.
Household inflation concerns remained largely stable, with 83.6% perceiving inflation as high in January 2025, compared to 83.5% in December 2024.
The IES is conducted by the CBN, drawing respondents from the National Bureau of Statistics (NBS) and the National Population Commission (NPC). The latest survey covered 1,900 businesses and 1,665 households, offering critical insights to guide policymakers in tackling inflation’s impact on businesses and consumers alike.
