Nigerian businesses are grappling with a harsh operating environment marked by insecurity, multiple taxation, and elevated borrowing costs, even as they express growing confidence in the country’s economic outlook, according to the Central Bank of Nigeria’s (CBN) May 2026 Business Expectations Survey.
The Business Confidence Index (BCI) stood at 7.9 points in May, an increase from 3.9 index points in April, reflecting a mixed but generally positive outlook among businesses regarding the country’s economic environment.
The improvement in sentiment was largely supported by a perceived easing of governance and policy-related concerns (15.7 percent) and continued progress in economic diversification (15.6 percent). More cautious sentiments reflect ongoing energy-related challenges (26.7 percent) and elevated geopolitical uncertainties (7.7 percent).
The survey showed that while firms remain optimistic about business conditions over the coming months, significant structural challenges continue to weigh on operations, expansion, and hiring decisions.
The survey found that insecurity ranked as the top business constraint with an index score of 72.9 points, while high and multiple taxes followed closely at 70.3 points. High interest rates scored 67.7 points, underscoring the impact of expensive credit on business operations and investment decisions.
