Nigerian business leaders bet on economic growth amid inflation woes

Onome Amuge

Nigerian chief executive officers are facing a twin challenge of soaring inflation and persistent macroeconomic volatility, yet the majority remain optimistic about the prospects for domestic economic growth over the next year, according to PwC’s 28th Annual Global CEO Survey.

The survey, which collated the views of 4,701 CEOs worldwide, including a substantial cohort in Nigeria, revealed that 58 per cent of Nigerian business leaders identify inflation as a major concern, while 39 per cent are worried about the unpredictable macroeconomic environment.

Despite these headwinds, the report noted that 61 per cent of Nigerian CEOs anticipate an expansion of the domestic economy in the coming 12 months, marking a substantial increase from the 38 per cent recorded in the previous year’s survey.

PwC’s findings suggest a proactive and adaptive stance among Nigerian business leaders. 61 per cent are actively exploring opportunities in new sectors, while 56 per cent are strategically targeting new customer segments. 

The report highlighted this resilience, stating, “CEOs remain optimistic about the economy, with nearly 60 per cent of CEOs globally and 61 per cent in Nigeria anticipating a rise in economic growth over the next 12 months, up from 38 per cent in last year’s global survey.” 

It further noted the proactive strategies being deployed. “Despite a local economy marked by inflationary pressures and macroeconomic volatility, with 64 per cent expressed confidence in the growth of the domestic economy. In response to growing economic pressures, CEOs in Nigeria are reinventing their operations and business models to create value in new ways,” it noted.

Sam Abu, regional senior partner, West Market Area, PwC Nigeria, commented on this determined outlook: “Nigerian CEOs are not just looking to survive. They’re focused on transforming their business models to seize new opportunities in this volatile environment.”

The survey also underscored the rising importance of Artificial Intelligence (AI) for Nigerian businesses, with 81 per cent of CEOs seen planning to integrate AI into their operations within the next three years. 

Furthermore, the report indicated a growing commitment to environmental sustainability, with 67 per cent of Nigerian CEOs reporting climate-friendly investments over the past five years and 61 per cent linking executive compensation to the achievement of sustainability targets.

While acknowledging inflation and macroeconomic volatility as key risks looming in 2025, the prevailing sentiment among Nigerian CEOs remains one of cautious optimism, underpinned by a strategic emphasis on innovation, the adoption of AI, and a growing focus on sustainable business practices.

Abu issued a clear call to action for those yet to embrace change, stating: “CEOs who haven’t yet adapted must act now. The gap between businesses embracing transformation and those lagging behind will only continue to grow.”