Nigerian businesses expect the naira to strengthen gradually against the United States dollar over the next six months, despite persistent concerns over high borrowing costs, insecurity, and multiple taxation.
This is according to the latest Business Expectations Survey released by the Central Bank of Nigeria (CBN).
The survey, which assessed business sentiment for April 2026, showed that firms remain cautiously optimistic about the economy amid lingering structural and macroeconomic pressures.
The apex bank said overall business confidence stood at 3.9 index points during the review period, with optimism expected to improve over the short- and medium-term.
The naira closed at N1,371/$1 on Thursday, compared with N1,368.95/$1 recorded a day earlier, according to CBN data.
According to the report, businesses expect gradual appreciation of the naira against the dollar as liquidity conditions improve and exchange-rate stability strengthens.
Respondents attributed their optimism to improved expansionary policies, which accounted for 19 per cent of positive sentiment, while better access to finance and economic diversification contributed 13 per cent each.
The industry sector recorded the highest confidence level at 8.8 index points, reflecting stronger sentiment in manufacturing and industrial activities, while businesses in the North-East expressed the highest regional optimism.
The CBN also noted that confidence remained positive for the next one month, three months, and six months, indicating expectations of gradual macroeconomic improvement.
However, businesses said elevated borrowing costs would likely persist despite expectations of exchange-rate stability.
According to the survey, insecurity remained the biggest challenge facing businesses with a score of 74.1 points, followed by high and multiple taxation at 70.5 points.
High interest rates scored 67.4 points, while high bank charges and competition recorded 62.8 points and 61.8 points, respectively.
Respondents also cited financial constraints, poor infrastructure, energy-related issues, governance concerns, and geopolitical risks as major obstacles affecting operations and expansion plans.
The latest survey suggests businesses are beginning to see signs of macroeconomic stabilisation following ongoing reforms introduced by the Federal Government and the CBN.
Investors are now watching for further policy direction ahead of the CBN’s 305th Monetary Policy Committee meeting scheduled for next week.
At its last meeting, the apex bank reduced the Monetary Policy Rate by 50 basis points to 26.5 per cent from 27 per cent.
