Central Bank of Nigeria metrics indicated that domestic business operational conditions improved for the third consecutive month, supported by Q2 GDP expanding 4.43% year-on-year. The improvement is a positive sign for the Nigerian economy.
The improvement in business conditions reflects the continued recovery of the economy. The GDP growth and the improvement in business conditions are signs that the government’s reforms are beginning to yield results. The improvement is a positive sign for businesses and investors.
The winners: Nigerian businesses, which are operating in improved conditions; and the Nigerian economy, which is growing. The losers: those who have not benefited from the improvement; and the Nigerian government, which must sustain the momentum.
Bottom Line: Business conditions are improving. The economy is growing. The question is whether the improvement can be sustained or will be reversed by external shocks.