Despite challenges, business confidence rises as firms anticipate higher demand and expansion in coming months…
Insecurity and inconsistent electricity supply continue to rank as the top obstacles for Nigerian businesses, according to the Central Bank of Nigeria’s (CBN) Business Expectations Survey (BES) for October 2025.
The survey, conducted between October 6 and 10, 2025, sampled 1,900 firms across the industrial, services, and agricultural sectors, achieving a 99.1% response rate. Respondents placed insecurity at 71.8 points and insufficient power supply at 70.9 points, making them the most critical constraints for firms. Other concerns included high or multiple taxes (70.2 points), elevated interest rates (68.4), and financial challenges (65.6).
“Business constraints were more focused on financial factors than political challenges,” the CBN noted, highlighting that cost-related pressures, rather than political instability, remain the primary risk to operational stability and profitability.
Other issues cited were high bank charges, an unfavourable economic climate, and unclear economic regulations, while poor infrastructure and political instability ranked lowest among surveyed firms.
Confidence on the Rise
Despite these constraints, Nigerian firms show a growing sense of optimism about the economy. The Overall Business Confidence Index (BCI) increased to 38.5 points in October, up from 31.5 in September. Expectations for November, the next three months, and the next six months are projected at 41.4, 48.3, and 50.2 points, respectively, reflecting anticipated growth in demand, sales, and consumer activity.
Among sectors, industry led with 40.0 points, followed by agriculture (38.1) and services (37.6). Regionally, the North-East registered the highest confidence at 56.1 points, while the South-South recorded the lowest at 23.3 points, attributed to reduced output and weaker business volumes in oil-producing areas.
Employment, Expansion, and Production Outlook
The survey also highlighted modest improvements in hiring and capacity utilisation, with average capacity utilisation rising to 62.0% from 60.4% in September. The Mining and Quarrying sector had the strongest expansion outlook at 80.0 points, while Construction ranked highest for employment prospects at 36.8 points, followed by Non-Market Services (26.6), Agriculture (24.7), and Manufacturing (18.0).
Businesses also expressed cautious optimism about the stability of the naira, expecting gradual appreciation over six months. Similarly, borrowing rate expectations remained stable, indicating a moderately favourable financing environment.
About the Survey
The Business Expectations Survey is a monthly CBN assessment conducted in collaboration with the National Bureau of Statistics (NBS). It tracks business sentiment and macroeconomic conditions, offering insight into sectoral performance, operational risks, and business confidence trends across Nigeria.
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