CBN business expectations survey shows high interest rates, multiple taxes, and poor infrastructure remain top challenges for Nigerian businesses

CBN business expectations survey has revealed that Nigerian businesses are struggling with high interest rates, multiple taxes, and poor infrastructure—identified as the biggest challenges in September 2025.

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According to the Central Bank of Nigeria’s (CBN) latest report, business confidence improved modestly, with the Confidence Index standing at 31.5 points for September and projected to rise to 51.8 points over the next six months. Despite this cautious optimism, financial pressures continue to weigh heavily on firms.

The survey showed that 70.8% of respondents cited high bank charges and multiple taxes as their biggest hurdles, closely followed by poor infrastructure at 70.7%.

Issues like insufficient power supply (37.8%) and competition (40.4%) were less concerning to business owners, suggesting that financial and structural burdens outweighed operational ones.

The CBN Business Expectations Survey also indicated that while businesses remain hopeful about economic recovery, many still face systemic barriers that limit productivity and investment growth.

The persistence of fiscal and infrastructure constraints continues to dampen overall economic momentum.

Meanwhile, the CBN’s Households Expectations Survey found that Nigerian families remain cautious about the economy, though sentiments have slightly improved.

The consumer sentiment index rose to -6.4 points in September from -7.2 points in August, showing a small shift towards optimism.

The Economic Condition Index also improved from -4.3 to -2.9, while the Family Financial Situation Index increased slightly from -17.0 to -16.5.

Notably, the Family Income Sentiment Index turned positive at 0.1 points—the first sign of optimism since April 2025.

In a related finding, the CBN reported that rural residents are feeling inflation more acutely than their urban counterparts, with 73.9% of rural respondents saying prices were high compared to 72.4% in cities.

Overall, the CBN Business Expectations Survey highlights a complex picture—one of resilience amid persistent structural and financial challenges.

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Businesses appear cautiously confident about future prospects, even as households continue to navigate the pressures of inflation and limited income growth.