Nigerian companies proceed to battle with excessive operational prices, pushed largely by extreme bank expenses, a number of taxes, and insufficient infrastructure, which ranked as the highest constraints in September 2025.
That is based on the Enterprise Expectations Survey Report launched by the Central Bank of Nigeria (CBN).
The survey revealed that respondents recognized Excessive Bank Fees (70.8), Excessive/A number of Taxes (70.8), and Poor Infrastructure (70.7) because the three most urgent challenges hindering enterprise operations throughout the nation.
Regardless of these challenges, the report confirmed a modest degree of optimism amongst companies.
The Confidence Index, the report acknowledged, stood at 31.5 index factors in September 2025, reflecting the expectation of average enchancment within the macroeconomic setting.
The survey additionally projected optimism to peak at 51.8 index factors over the subsequent six months, signaling cautious confidence amongst respondents about future financial situations.
North-East highest degree of enterprise optimism
The report highlighted important regional variations in sentiment. Companies within the North-East expressed the very best degree of optimism at 48.7 index factors, whereas these within the South-East recorded the bottom at 7.3 index factors.
The CBN urged that the low optimism within the South-East could also be linked to the next prevalence of enterprise constraints, together with poor infrastructure and a number of taxation at state and native ranges.
Different notable constraints recognized by companies embrace unfavourable financial insurance policies (64.9), unpredictable alternate charge actions (62.3), restricted entry to credit score (58.5), and inflationary pressures (55.6).
On the decrease finish of the record, the report famous, had been competitors (40.4) and inadequate energy provide (37.8), which, whereas nonetheless important, had been much less steadily cited in comparison with monetary and monetary burdens.
Why this issues
The Enterprise Expectations Survey is essential for understanding the well being of Nigeria’s enterprise setting and the broader economic system. Regardless of the optimistic pattern within the Buying Managers’ Index (PMI) and rising optimism about future situations, the persistent structural challenges highlighted within the report — excessive bank expenses, a number of taxation, and poor infrastructure — pose important threats to sustainable progress.
These constraints instantly have an effect on profitability, job creation, and funding selections, significantly amongst micro, small, and medium enterprises (MSMEs) that kind the spine of Nigeria’s personal sector. Excessive monetary prices and an unpredictable tax setting cut back the capability of companies to broaden, spend money on innovation, or rent new employees, thereby limiting the potential affect of ongoing financial reforms.
For policymakers, the survey serves as a helpful barometer for gauging enterprise sentiment and figuring out areas the place reforms are urgently wanted.
What you must know
- In CBN’s newest Buying Managers’ Index (PMI), it was reported that Nigeria’s economic system continued its upward momentum in September 2025, PMI rose to 54.0 factors.
- The CBN famous that the index elevated from 51.7 factors in August, marking the tenth consecutive month of enlargement.
- The report additional indicated that the Composite PMI progress, pushed by sturdy performances throughout the Business, Providers, and Agriculture sectors, mirrored a continued enchancment in total financial exercise and enterprise confidence nationwide.
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