In our 2018 CEO Outlook, we found a significant number of chief executives positive about the growth trajectory of the country’s economy and their respective industries. That optimism has continued this year with 76 percent (same as in 2018) of CEOs showing great faith in the economic environment. A major point of difference between the current and preceding years is that 42 percent of CEOs (4 percent in 2018) are very confident about the country’s growth prospects over the next three years.
“The country’s economy has witnessed eight consecutive quarters of year-on-year growth,” according to Wole Obayomi, KPMG in Nigeria’s Head of Tax, People and Regulatory Services. “This clearly situates the economy in the recovery phase of the economic cycle. In addition, the country’s general elections were conducted earlier this year and they were deemed to be largely successful. With the return of the incumbent administration, it is expected that there will fundamentally be policy continuity. So, it is perhaps unsurprising that Nigerian CEOs are more confident in their growth expectations.
“With the political risks significantly reduced, the economy will benefit from the right policy signals and direction. Some of the areas of focus would include the implementation of the minimum wage increase, the viability of our foreign reserves (which is intrinsically tied to oil price movements) and the sustainability of the fuel subsidy regime.”
At the industry level in 2019, there has also been a significant increase in CEOs (34 percent) who are very confident about the growth of their industries.