CBN Survey Discloses Key Issues Nigerian Businesses Face, Most Affected Regions
- Nigerian businesses ranked poor electricity supply and insecurity as their top challenges
- Despite challenges, firms expressed optimism about the economy and future growth
- Structural issues such as high taxes, interest rates, and regulatory concerns persist
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Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Businesses in Nigeria identified inadequate electricity supply and insecurity as their biggest operational challenges in March 2026, according to the latest Business Expectations Survey released by the Central Bank of Nigeria.
The survey, published on Thursday, showed that while firms remain optimistic about the economy, persistent structural issues continue to affect operations and profitability.
Source: Getty Images
According to a PUNCH report, the survey found that insufficient power supply ranked as the most significant challenge, with an index score of 74.5, followed by insecurity at 70.9.
Other major constraints highlighted by respondents include high or multiple taxes (69.2), high interest rates (66.6), and financial problems (64.3).
The apex bank stated that these factors directly impact business stability and limit growth across sectors.
Firms maintain positive outlook
Despite these challenges, the survey showed that businesses remain optimistic about the macroeconomic environment.
The confidence index stood at 15.6 points in March 2026, indicating positive sentiment, although slightly lower than the previous month. Businesses expect this optimism to improve significantly to 43.9 points over the next six months.
The survey, conducted between March 9 and 13, covered 1,900 firms across industry, services, and agriculture, with a response rate of 99.7 per cent.
All sectors expressed confidence in the economy, with agriculture recording the highest optimism for the current period.
On a regional level, the North-East showed the strongest positive sentiment with 39.4 points, while the South-East recorded a negative outlook at –5.5 points. However, all regions are expected to see improvements in the coming months.
Growth expectations remain strong
The report also indicated that businesses anticipate growth in key performance areas, including volume of orders, overall business activity, financial conditions, and access to credit.
Firms signalled plans to increase hiring in April 2026, driven by expansion expectations. The mining and quarrying sector recorded the highest employment prospects, while agriculture showed the strongest expansion plans.
Structural issues persist
Beyond electricity and insecurity, respondents identified other constraints such as high bank charges (63.5), an unfavourable economic climate (62.0), unclear economic laws (61.6), and an unfavourable political climate (60.4).
Access to credit ranked lower among the challenges, with an index of 57.7, suggesting it is less severe compared to other constraints.
The CBN noted that the findings highlight the need for reforms in critical areas, including energy supply, security, and the regulatory and financial environment.
Source: UGC
Capacity utilisation and exchange rate outlook
Average capacity utilisation across sectors stood at 52.5 per cent in March 2026, reflecting moderate use of installed capacity.
Breakdown by sector showed manufacturing at 54.4 per cent, agriculture at 53.9 per cent, construction at 52.7 per cent, and mining and quarrying at 48.9 per cent.
On exchange rate expectations, respondents projected that the naira would appreciate against the US dollar, while also expressing optimism about borrowing conditions in the near term.
The apex bank added that the survey reflects the views of participating firms and does not necessarily represent its official position.
FG unveils plan to lift 50 million Nigerians out of poverty
Legit.ng earlier reported that the federal government has unveiled a new national framework aimed at lifting 50 million Nigerians out of poverty by 2030.
The initiative, tagged One Humanitarian, One Poverty Response System (OHOPRS), was formerly launched in March 2026, with authorities outlining a financing plan of N16 trillion for the 2026–2030 period.
The initiative will be executed through development partners, the private sector, and climate funds.
Source: Legit.ng
