Nigerian businesses continue to struggle with high operational costs, driven largely by excessive bank charges, multiple taxes, and inadequate infrastructure, which ranked as the top constraints in September 2025.
This is according to the Business Expectations Survey Report released by the Central Bank of Nigeria (CBN).
The survey revealed that respondents identified High Bank Charges (70.8), High/Multiple Taxes (70.8), and Poor Infrastructure (70.7) as the three most pressing challenges hindering business operations across the country.
Despite these challenges, the report showed a modest level of optimism among businesses.
The Confidence Index, the report stated, stood at 31.5 index points in September 2025, reflecting the expectation of moderate improvement in the macroeconomic environment.
The survey also projected optimism to peak at 51.8 index points over the next six months, signaling cautious confidence among respondents about future economic conditions.
North-East highest level of business optimism
The report highlighted significant regional differences in sentiment. Businesses in the North-East expressed the highest level of optimism at 48.7 index points, while those in the South-East recorded the lowest at 7.3 index points.
The CBN suggested that the low optimism in the South-East may be linked to a higher prevalence of business constraints, including poor infrastructure and multiple taxation at state and local levels.
Other notable constraints identified by businesses include unfavourable economic policies (64.9), unpredictable exchange rate movements (62.3), limited access to credit (58.5), and inflationary pressures (55.6).
At the lower end of the list, the report noted, were competition (40.4) and insufficient power supply (37.8), which, while still significant, were less frequently cited compared to financial and fiscal burdens.
Why this matters
The Business Expectations Survey is critical for understanding the health of Nigeria’s business environment and the broader economy. Despite the positive trend in the Purchasing Managers’ Index (PMI) and growing optimism about future conditions, the persistent structural challenges highlighted in the report — high bank charges, multiple taxation, and poor infrastructure — pose significant threats to sustainable growth.
These constraints directly affect profitability, job creation, and investment decisions, particularly among micro, small, and medium enterprises (MSMEs) that form the backbone of Nigeria’s private sector. High financial costs and an unpredictable tax environment reduce the capacity of businesses to expand, invest in innovation, or hire new workers, thereby limiting the potential impact of ongoing economic reforms.
For policymakers, the survey serves as a valuable barometer for gauging business sentiment and identifying areas where reforms are urgently needed.
What you should know
- In CBN’s latest Purchasing Managers’ Index (PMI), it was reported that Nigeria’s economy continued its upward momentum in September 2025, PMI rose to 54.0 points.
- The CBN noted that the index increased from 51.7 points in August, marking the tenth consecutive month of expansion.
- The report further indicated that the Composite PMI growth, driven by strong performances across the Industry, Services, and Agriculture sectors, reflected a continued improvement in overall economic activity and business confidence nationwide.
