CBN: High bank charges and other factors hinder business growth in December.

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A recent survey report by the Central Bank of Nigeria (CBN) has identified high bank charges, poor infrastructure, an unfavorable economic climate, insecurity, and access to credit as the top business constraints in December 2024. The report, titled “Business Expectation Survey, BES,” also revealed that firms remain optimistic about the overall macro-economic conditions.

According to the report, respondents cited high bank charges as a major constraint, a concern that has been echoed by various stakeholders in the past¹. The CBN has previously taken steps to address this issue, releasing revised guidelines to slash bank charges and protect customers in 2019 ².

Despite these challenges, firms remain optimistic about the macro-economy, driven by positive outlooks on exchange rates, business activities, and total orders. The report stated, “Respondent firms were optimistic about the overall macroeconomy. The optimism may be attributed to the positive outlook on exchange rate, volume of business activities, and volume of total order.”

*Key Highlights of the Report:

– _Top Business Constraints:_ High bank charges, poor infrastructure, unfavorable economic climate, insecurity, and access to credit.

– _Firms’ Outlook:_ Optimistic about the overall macro-economic conditions.

– _Drivers of Optimism:_ Positive outlooks on exchange rates, business activities, and total orders.

– _Employment Expectations:_ Businesses hope to employ more workers in January 2025.

– _Sectoral Prospects:_ Agriculture has the highest prospect for expansion in January.

In a separate report, the CBN’s “Inflation Expectation Survey Report” revealed that small businesses had the highest perception of high inflation rates in December 2024, at 83.9%. Respondents cited energy costs, exchange rates, transportation costs, and insecurity as key factors influencing their perception of inflation.

However, businesses and households expect the inflation rate to gradually ease

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