High or multiple taxation, insecurity and elevated interest rates emerged as the biggest constraints confronting Nigerian businesses in September 2026, according to the latest Business Expectations Survey of the Central Bank of Nigeria (CBN).
The survey showed that high or multiple taxation recorded the highest constraint index at 67.1 points, followed by insecurity at 66.2 points and high interest rates at 64.3 points.
Other major concerns included an unfavourable political climate, with 61.8 points; high bank charges, 61.5 points; competition, 60.2 points; and unclear economic laws and an unfavourable economic climate, both at 58.7 points.
Despite the pressures, businesses remained cautiously optimistic about the economy. The Business Confidence Index stood at 13.4 points in September, indicating that positive sentiment persisted, although it moderated from the previous month.
The CBN attributed the positive outlook mainly to increased demand, economic diversification and improved access to finance, which accounted for 29.3%, 18.9% and 13.5% respectively of the factors supporting business confidence.
The industrial sector recorded the strongest improvement during the month, with its confidence index rising from 17.1 points in August to 19.4 points in September. Services moderated from 13.3 to 10.2 points, while agriculture declined from 13.9 to 12.8 points. All three sectors, however, retained positive sentiment.
Businesses expect conditions to improve further, with the CBN survey projecting the Business Confidence Index at 23.6 points by December 2026 and 36.1 points by March 2027.
However, financing costs remain a major concern. Firms expect borrowing rates to remain elevated in the short term, although they anticipate some moderation over the next six months.
Businesses also maintained a positive outlook for the naira, with respondents expecting modest appreciation against the US dollar across the survey periods.
The survey suggests that while Nigerian firms continue to see opportunities in stronger demand and economic diversification, taxation, insecurity and the cost of credit remain significant barriers to stronger business expansion.
Nairametric
