CSL Nigeria Daily - 22 July 2025

CSL Nigeria Daily - 22 July 2025
(Source: CSL RESEARCH, Date: 22-Jul-2025)

Dear Esteemed Client,

CBN's business expectation survey

The Central Bank of Nigeria (CBN) has released its Business Expectations Survey (BES) for June 2025, offering insights into the outlook of key sectors"”Industry, Services, and Agriculture. The findings indicate continued optimism about Nigeria's macroeconomic prospects, with the overall business confidence index standing at 20.7 points, up from 18.7 points in May 2025. Looking ahead, business sentiment is expected to improve, with confidence levels projected to rise to 23.0 points in July, 34.9 points in September, and 41.3 points by December 2025. These indices represent businesses' expectations regarding changes in various aspects of their operations in the months ahead. A confidence index above 0.0 signifies positive sentiment toward business activities, while a value below 0.0 indicates a negative outlook.

Click here to download full report: CSL-Nigeria-Daily-22-July-2025-Economy.pdf"‹"‹"‹"‹"‹"‹"‹"‹"‹"‹"‹"‹"‹"‹"‹"‹"‹"‹"‹"‹"‹"‹"‹"‹"‹"‹"‹"‹"‹

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Media Highlights:

Gencos fear blackout over N5.2tn debt

Power generation companies have said that their long-time patriotism to the nation can no longer keep the power plants running, especially in the face of a fresh N1.2tn debt incurred in the first half of 2025, which increased the total debt to Gencos at N5.2tn. This was as the Minister of Power, Adebayo Adelabu, through his media aide, Bolaji Tunji, told The PUNCH on Monday that efforts were being made to defray part of the debt. In a statement signed by the Chief Executive Officer of the Association of Power Generation Companies, Dr Joy Ogaji, on Monday, the GenCos warned that the power sector is heading toward collapse, unless the Federal Government urgently addresses its deepening liquidity crisis. Read more here"‹

NNPC Recorded N905bn Profit in June, Federation Remittances Hit N6.96tn in 5 Months

The Nigerian National Petroleum Company Limited (NNPC) yesterday announced a Profit After Tax (PAT) of N905 billion for its June operations, a drop from the N1.054 trillion recorded in the previous month of May. However, the national oil company posted statutory payments of N6.961 trillion to the federation between January and May 2025, up from the N5.583 trillion it remitted from January to April this year. Besides, the NNPC, in its Monthly Report Summary for June released last night, announced a total revenue of N4.571 trillion in June, down from the N6.008 trillion earnings which it made in the May 2025 reporting circle. But crude oil and condensate production rose from 1.629 million barrels per day in May to 1.68 million during the period under consideration, showing an increase of 51,000 bpd between May and June this year. Read more here

Tariff hike: US rules out hasty trade deals

The United States has indicated it will not be rushed into finalising trade agreements ahead of the August 1 deadline for higher tariffs, emphasising that the quality of deals takes precedence over timing. According to Reuters, U.S. Treasury Secretary Scott Bessent stated that the Trump administration is focused on securing strong and comprehensive agreements rather than meeting arbitrary deadlines. ...We're not going to rush for the sake of doing deals," Bessent told CNBC during an interview. Asked whether the August 1 deadline could be extended for countries engaged in productive negotiations with Washington, Bessent noted that the final decision rests with President Trump. Read more here"‹

Nigeria's GDP grew by 3.13% in Q1 2025 after rebasing

Nigeria's Gross Domestic Product (GDP) grew by 3.13percent (year-on-year) in real terms in the first quarter of 2025 according to data released by the National Bureau of Statistics (NBS). This growth rate is higher than the 2.27 percent recorded in the first quarter of 2024. The performance of the GDP in the quarter under review was driven mainly by the Services sector, which recorded a growth of 4.33 percent and contributed 57.50 percent to the aggregate GDP. NBS also reported that in the first quarter of 2025, Nigeria's GDP at basic price stood at N94.05 trillion in nominal terms. This performance is higher when compared to the first quarter of 2024, which recorded an aggregate GDP of N79.5 trillion, indicating a year-on-year nominal growth of 18.30 percent. Read more here"‹