Business and Economic Review for February 2012 - RTC
Category: Nigerian Economy
March 14, 2012
Developments in the first two months of the year 2012 validates the position that inflation, cost of doing business and purchasing power may be the major concerns of Nigerian businesses this year while risks remain high, but worst case scenarios have not emerged.
Rising oil prices due to Iranian fears have meant (at least for the time being) that revenues and exchange rates are strengthening. Oil prices have risen consistently in January and February, driven significantly by fears over Iranian oil sanctions and the possibility of conflict with the US/Israel and over the straight of Hormuz, a significant global supply route.
Political scenarios remain complex as conflicts over regional poverty, terrorism in the North-East, revenue distribution, 2015 strategising, “sovereign national conference” (and now the possibility of a Jonathan second term) intensify.
Businesses must continue to keep a keen watch on global developments and markets even though external conditions remain tolerable, internal security and socio-political pressures, rising inflation and declining consumer purchasing power are already giving business managers grey hairs.