Nigeria's Business Activity Drops to 8-Months Low Amidst Rising Costs

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Nigeria's Business Activity Drops to 8-Months Low Amidst Rising Costs - Nigeria’s business sector experienced a setback in July, as indicated by the Stanbic IBTC Purchasing Managers’ Index (PMI). The index declined to 49.2, marking a return to contractionary territory after eight months of expansion. The primary culprit behind this downturn is the persistent rise in input costs. These elevated expenses have compelled businesses to increase their selling prices, consequently dampening consumer demand. As a result, new orders and overall output have contracted. While some companies have attempted to mitigate the situation by reducing prices to attract customers, the overall trend remains negative. Business confidence has also deteriorated, reaching a record low. This reflects the growing pessimism among businesses about the economic outlook. Although some companies expressed optimism about long-term growth prospects, the immediate challenges posed by inflation and weak consumer demand have overshadowed these expectations. The PMI data underscores the difficulties faced by Nigerian businesses as they navigate a challenging operating environment. The government will need to address the root causes of inflation and implement policies to support businesses and boost consumer confidence to reverse this trend.

Abuja Gears Up for ESRI User Conference West Africa 2024 - Abuja, Nigeria braces for a major GIS event: the ESRI User Conference West Africa 2024 (September 10-11). This key gathering brings together GIS professionals, academics, and industry leaders from across the region

To register for the Esri User Conference West Africa 2024, please click the link:  https://africabusinessconvention.com/event/esri-user-conference-west-africa-2024/

 The conference emphasizes the growing importance of GIS in areas like infrastructure, environment, disaster response, and urban planning. Attendees will get hands-on experience with the latest ArcGIS software, hear from leading experts, and network to build partnerships and share best practices. With more satellite imagery, GPS devices, and open-source software like QGIS, GIS data is more accessible than ever, driving innovation in West Africa. This conference serves as a launchpad for the future, empowering participants to use GIS to create a better tomorrow. Read more

Nigeria's Power Sector Struggles as Neighbours Default on $14.19m Q1 Debt - Nigeria's financial woes have been exacerbated by a $14.19 million electricity debt owed by neighbouring countries for the first quarter of 2024. This persistent issue highlights the challenges facing the nation's power sector. The non-payment by Benin Republic, Niger, and Togo, coupled with a similar trend among domestic customers, has put a significant strain on Nigeria's Market Operator. While there has been some progress in recovering past debts, the ongoing failure to settle current bills remains a major concern. The situation is compounded by the challenges faced by domestic distribution companies (DisCos), who owe a substantial amount to generation and transmission companies. Despite recent improvements in remittance rates, the sector continues to grapple with financial instability. The Nigerian government has taken steps to address these issues, including limiting electricity supply to international customers and prioritizing domestic consumption. However, the persistent debt problem underscores the need for more comprehensive solutions to stabilize the power sector and improve Nigeria's overall financial health.

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