Firms remain optimistic about growth, but structural challenges continue to squeeze operations across Nigeria…..
Businesses across Nigeria are grappling with deep-rooted operational challenges, with unreliable electricity supply and insecurity emerging as the most pressing concerns in March 2026, according to the latest survey by the Central Bank of Nigeria.
The Business Expectations Survey, which captured responses from 1,900 firms across key sectors, revealed that inadequate power supply ranked as the top constraint, closely followed by insecurity, high taxation, elevated interest rates, and financial pressures.
Despite these hurdles, the overall mood in the business community remains cautiously optimistic. The report showed a positive confidence index of 15.6 points for March, with expectations that sentiment will strengthen significantly to 43.9 points over the next six months.
The survey, conducted between March 9 and 13, highlights a complex picture: businesses are hopeful about the future, yet still weighed down by persistent structural bottlenecks that affect productivity and profitability.
Across sectors, confidence remained broadly positive. Agriculture led the optimism rankings for the current period, while projections for industry and services also pointed to steady growth in the near term.
Regionally, the North-East recorded the strongest business confidence, while the South-East lagged with slightly negative sentiment. However, expectations across all regions are tilted toward improvement in the coming months.
Firms also signaled plans to scale up operations. Many respondents projected increases in orders, business activity, and overall financial conditions, alongside improved access to credit. Hiring intentions were similarly upbeat, with companies indicating plans to expand their workforce in April, particularly in mining and quarrying, while agriculture showed the strongest expansion drive.
Still, the survey underscores that key structural issues remain unresolved. Beyond electricity and security challenges, businesses pointed to high bank charges, regulatory uncertainty, and an unfavourable economic and political climate as significant barriers.
Interestingly, access to credit ranked lower among concerns, suggesting that while financing remains an issue, it is less critical compared to infrastructure and security constraints.
The report also revealed that capacity utilisation across sectors stood at just over half, indicating that many firms are operating below their full potential. Manufacturing recorded slightly higher utilisation levels than other sectors, while mining and utilities lagged behind.
On the currency front, respondents expressed optimism that the naira could strengthen against the US dollar, while also anticipating more favourable borrowing conditions in the months ahead.
Overall, the findings point to a business environment that is resilient but strained where optimism about future growth exists alongside urgent calls for reforms in power supply, security, and the broader regulatory landscape.
