CBN: Nigerian firms rank taxation, insecurity and interest rates as top constraints in September

Nigerian businesses identified high or multiple taxation, insecurity and high interest rates as their biggest constraints in September 2026.

This is according to the Central Bank of Nigeria (CBN) Business Expectations Survey.

Despite these challenges, the Business Confidence Index stood at 13.4 points.

Firms also expect business confidence to strengthen over the coming months, supported by increased demand, economic diversification and access to finance.

Taxation tops firms’ concerns

High or multiple taxation was the most prominent constraint identified by businesses in September, followed by insecurity and high interest rates. The CBN said the three factors recorded the highest constraint indices among the issues assessed during the review period.

• “High/Multiple Taxation (67.1 index points), Insecurity (66.2 index points) and High Interest Rate (64.3 index points) were the top three business constraints.”
• Unfavourable political climate followed with 61.8 points, while high bank charges recorded 61.5 points.
• Competition was ranked at 60.2 points, while unclear economic laws and unfavourable economic climate both recorded 58.7 points.
• Financial constraints and poor infrastructure ranked lowest among the top 10 constraints, at 57.5 and 55.0 points respectively.

Despite the pressures identified by firms, the overall business outlook remained positive during the month.

Business confidence remains positive

The Business Confidence Index stood at 13.4 points in September, indicating continued optimism among firms despite the slight decline from August. The positive outlook was supported mainly by increased demand, economic diversification and access to finance.

• “In the current month, respondents’ positive outlook could be attributed to increased demand (29.3%), economic diversification (18.9%) and access to finance (13.5%).”

The Industry sector recorded the strongest improvement, with its confidence index rising from 17.1 points in August to 19.4 points in September.

• Services moderated from 13.3 points to 10.2 points, while Agriculture declined from 13.9 points to 12.8 points.
• All sectors nevertheless maintained positive business sentiment during the review period.

The CBN said firms expect confidence to strengthen, with the index projected at 23.6 points in December 2026 and 36.1 points by March 2027.

Borrowing costs remain a concern

Businesses expect borrowing rates to remain elevated across the review periods, although the CBN survey points to a modest decline in borrowing costs over the next six months. Firms also maintained a positive outlook on the exchange rate.

• “Sentiment on the exchange rate leans firmly optimistic with respondents anticipating that the naira would gain modestly against the US dollar across review periods.”
• “Respondents anticipate that borrowing rates will remain high across all review periods, as evidenced by the sustained positive borrowing rate indices.”
• “However, there are expectations of a modest decline over the next six months,” the CBN stated.

All regions expressed optimism about the macroeconomy in the coming month, except the South-East, while the North-East emerged as the most optimistic region across the forecast horizon.

The survey indicates that businesses remain cautiously optimistic about future conditions despite persistent concerns over taxation, insecurity and financing costs.

• In June 2025, President Bola Tinubu signed into law four landmark tax reform bills comprising the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
• In March 2026, the Federal Government rolled out a presumptive tax framework for Micro, Small and Medium Enterprises (MSMEs) to simplify tax compliance and encourage businesses in the informal sector to formalise.

The Joint Revenue Board also prohibited the collection of road taxes, levies and related charges through checkpoints, including the use of road stickers by state and non-state actors, as part of efforts to curb multiple taxation.