Nigeria’s business environment is expected to strengthen steadily over the next six months, with business confidence projected to rise to one of its highest levels in recent years, according to the Central Bank of Nigeria’s (CBN) Business Expectations Survey (BES) for November 2025.
The survey shows that business confidence stood at 37.5 index points in November 2025, reflecting moderate optimism among respondents about the macroeconomic environment. This confidence is projected to accelerate sharply, rising to 52.8 index points within the next six months, signalling expectations of stronger economic activity by mid-2026.
“The confidence index in November 2025 stood at 37.5 points, reflecting optimism among respondents regarding the macroeconomy. This optimism is projected to improve continuously, reaching a peak of 52.8 index points over the next six months,” the CBN stated.
Sectoral data indicate broad-based optimism across the economy, with the industrial sector leading at 38.1 index points, followed by the agricultural and services sectors. In its own operations, Mining and Quarrying recorded the highest confidence at 50.0 index points, pointing to strong expectations for output and activity.
From a regional perspective, the North-East recorded the highest level of optimism at 52.7 index points, while the South-East posted the lowest at 18.7 index points. Despite the disparity, all regions reported positive expectations across the review periods.
The positive outlook is closely linked to expectations of business expansion, improved activity levels and rising labour demand. Respondents expressed optimism about the volume of business activity in the near term and over subsequent periods, suggesting potential growth momentum.
In line with these expectations, many businesses signalled plans to hire additional workers in December 2025. Sectoral analysis shows that construction has the highest expansion prospects, while Mining and Quarrying leads in employment outlook for the review month.
However, the survey also highlights persistent headwinds. Respondents identified insecurity, high taxes, poor power supply, high interest rates and financial constraints as the major challenges facing businesses in November. Poor infrastructure and an unfavourable political climate ranked lower, indicating that financial and structural issues weighed more heavily than political factors.
Meanwhile, data reported by Nairametrics show that Nigeria’s private sector continued to expand in November 2025, with the Purchasing Managers’ Index (PMI) rising to 56.4 from 55.4 in October. The increase points to broader economic expansion and reinforces signs of a gradual rebound in economic activity this year.
Overall, businesses remain cautiously optimistic, with expectations of growth over the coming months. However, sustained gains will depend on addressing insecurity, high operating costs, and financing challenges.
Nairametrics
