All sectors of Nigerian business are currently feeling optimistic, with the exception of the Construction sector, which has voiced concerns about employment plans. Agriculture, mining, energy, and water supply are among the industries that are hopeful about job expansion and higher capacity utilisation. The largest labour expansion is anticipated in Agriculture in November 2024, primarily due to government initiatives to increase agricultural output and seasonal demand. A larger hiring trend in reaction to rising economic activity includes this increase.
Businesses in the mining, quarrying, energy, gas, and water supply sectors also reported increased capacity utilisation in October 2024, indicating resilience and growth, particularly in resource-driven industries. Despite obstacles, the overall economic outlook is still favourable, especially in the industrial sector where supply chain problems, inflation, and exchange rate changes impede growth. The study shows optimism about business activity in the future, with sectors expecting sustained growth in January and April 2025 due to government measures and reforms aimed at boosting exports and demand.
NBS reports that inflation reached a peak of 25.8% in August 2023.
Different industries in Nigeria confront unique obstacles that influence their business strategies. Long-term Infrastructure shortages, high mortgage rates, and the growing cost of building materials have made the construction industry especially cautious about hiring projections. Supply chain interruptions, inflationary pressures, and the depreciation of the naira, which has increased the price of imported Steel and cement, have all contributed to the growing challenges faced by construction enterprises. The sector’s ability to create jobs has been hampered by these problems, which have resulted in project delays and fewer new contracts.
Inflation, currency fluctuations, and a high reliance on imported raw materials have also plagued the industrial sector, particularly manufacturing, which has been particularly vulnerable. The National Bureau of Statistics (NBS) reports that Inflation reached a peak of 25.8% in August 2023, which significantly impacted the operational costs of Manufacturing companies. Additionally, these firms have difficulty accessing foreign exchange to import essential machinery and components, which further exacerbates their vulnerabilities. Meanwhile, The Central Bank of Nigeria (CBN) noted that the agricultural sector could drive employment, with increased hiring scheduled for November 2024 due to seasonal activities like planting and harvest cycles.
CBN reports that ABP had helped more than 3.6 million farmers.
Government programs like the Anchor Borrowers’ Program (ABP), which works to increase food production by giving farmers access to loans and better technologies, have helped to promote employment in the agricultural sector. As of 2023, the CBN reports that this program had helped more than 3.6 million farmers, greatly increasing employment and output capacity. Mining and utilities are two industries that have shown a good trend in capacity utilisation. A renewed focus by the government in using Nigeria’s Mineral resources to diversify away from oil dependency has helped mining and quarrying operations. In the meantime, the infrastructure for the water and energy supply sectors has improved somewhat, resulting in more consistent output.
As a result of increased domestic energy production and a decreased need on expensive fuel imports, capacity utilisation in these industries has grown at a pace of about 2.8% annually by the middle of 2024. The present administration has put in place a number of programs to promote economic recovery when it comes to government changes. Notably, the Petroleum Industry Act (PIA) seeks to boost Investment and enhance governance in order to revive the oil and gas industry. In the meanwhile, measures to encourage non-oil exports and increase industrialisation are outlined in the National Development Plan 2021–2025.
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Additionally, businesses in the CBN survey expressed optimism about hiring and employment intentions in a number of industries, which is indicative of a larger belief in the nation’s seasonal and policy-driven economic trajectory. Stronger employment forecasts for late 2024 and early 2025 are a result of businesses expecting growth linked to industrial recovery, agricultural productivity, and positive government measures. These enhanced hiring plans are primarily driven by greater domestic production capacity, more favourable policy conditions, and rising demand for agricultural products.