Latest surveys reveal growing optimism among businesses as households continue to grapple with inflation, weak purchasing power and financial pressures…..
Business confidence in Nigeria recorded a notable improvement in May 2026, with companies expressing increased optimism about the country’s economic outlook despite persistent concerns over insecurity, multiple taxation and high borrowing costs.
According to the latest Business Expectations Survey released by the Central Bank of Nigeria (CBN), confidence in the macroeconomic environment rose sharply to 7.9 index points in May, compared with 3.9 points recorded in April.
The improvement signals growing confidence among business operators that economic conditions may gradually stabilise, even as structural challenges continue to weigh on operations across various sectors.
Data from the survey showed that businesses were encouraged by what they perceived as improvements in governance and policy implementation, as well as continued progress in economic diversification efforts.
Respondents cited reduced policy-related concerns and broader economic reforms as key factors supporting the positive outlook.
However, optimism was tempered by lingering challenges, particularly energy-related constraints, geopolitical tensions and broader cost pressures affecting business operations.
Despite these concerns, businesses across all sectors surveyed indicated expectations of increased economic activity and improved performance in the coming months.
Employment sentiment, however, remained largely negative, suggesting that many firms are still cautious about expanding their workforce despite improving confidence levels.
While businesses appear increasingly optimistic, Nigerian households continue to view the economy through a different lens.
The CBN’s latest Consumer Expectations Survey showed that consumers remained pessimistic about current economic conditions, with the Overall Consumer Sentiment Index deteriorating further to -16.8 points in May from -15.1 points in April.
The findings suggest that many households are yet to experience the benefits of economic reforms and continue to face significant financial strain.
According to the report, respondents expressed concerns about both current economic conditions and their personal financial situations.
The Economic Conditions Index stood at -19.5 points during the review period, reflecting widespread dissatisfaction with prevailing economic realities.
Similarly, the Family Financial Situation Index recorded -22.7 points, indicating that many households believe their financial position remains under pressure.
Consumer sentiment regarding family income also remained negative, with respondents expressing only limited confidence in their earnings capacity amid rising living costs.
Despite the gloomy assessment of present conditions, households appeared more hopeful about the future.
The Consumer Confidence Index for the next six months turned positive at 6.8 points, suggesting expectations that economic conditions and family income may improve over time.
The report also highlighted inflation as one of the most significant concerns for both businesses and consumers.
According to the CBN’s Inflation Expectations Survey, inflation perception remained elevated in May, with the Inflation Expectations Index standing at 44.8 points.
However, respondents expressed optimism that inflationary pressures could moderate over the next six months, with expectations easing to 26.2 points.
Among business categories, larger firms reported the highest concerns about inflation, with more than seven out of every ten respondents identifying rising prices as a major challenge.
Medium-sized enterprises reported comparatively lower inflation concerns, though price pressures remained a significant issue across all business segments.
The latest findings paint a mixed picture of Nigeria’s economy: businesses are becoming increasingly optimistic about the future, but consumers continue to struggle with the realities of inflation, high living costs and weakened purchasing power.
For policymakers, the challenge may be ensuring that improvements in business sentiment eventually translate into tangible benefits for households, including stronger income growth, lower inflation and improved living standards.
