The easing of geopolitical tensions in the Middle East and the fall in global crude oil prices have brightened the outlook for Nigerian businesses, with companies betting that lower energy costs will ease operating expenses after months of grappling with inflation and high production costs.
The Nigerian Economic Summit Group (NESG) Future Business Expectations Index rose to 128.4 points in June from 127.0 points in May, reflecting stronger confidence among firms that business conditions will improve over the next one to three months.
The report attributed much of the improved sentiment to easing geopolitical tensions in the Middle East, which pushed average global oil prices down to $87.7 per barrel in June from $112 per barrel in May.
“The generally positive outlook was partly shaped by expectations of lower energy costs as geopolitical tensions in the Middle East have eased,” the report said.
The optimism comes as Nigerian businesses continue to struggle with elevated operating costs despite signs that macroeconomic conditions are gradually stabilising.
