Power Shortages and Insecurity Threaten Nigerian Businesses’ Growth – CBN Survey
Insecurity and unreliable electricity remain the biggest threats to business stability and profitability in Nigeria, according to the Central Bank of Nigeria’s (CBN) latest Business Expectations Survey for October 2025. The report revealed that insecurity ranked highest among business concerns at 71.8 points, followed closely by erratic power supply at 70.9 points. Other major obstacles include high or multiple taxes (70.2 points), high interest rates (68.4 points), and financial challenges (65.6 points), showing how deeply economic factors are constraining growth across sectors.
The CBN noted that financial constraints have overtaken political instability as the main worry for business leaders. Despite these challenges, optimism is rising. The Overall Business Confidence Index climbed from 31.5 points in September to 38.5 points in October, with projections reaching 45.6 points in November and 52.5 points within six months. Businesses anticipate stronger consumer demand, higher sales, and a general improvement in Nigeria’s macroeconomic environment heading into 2026.
Sectoral data showed that the industrial sector led the optimism index at 40.0 points, followed by agriculture at 38.1 and services at 37.6. Regionally, the North-East recorded the highest confidence level at 56.1 points, while the South-South, despite being a key oil-producing area, posted the lowest at 23.3 points. The findings suggest that insecurity and economic uncertainty continue to affect regional business performance unevenly.
On the production front, capacity utilization improved slightly to 62.0 per cent in October from 60.4 per cent in September, indicating better resource use and stronger output. The CBN also reported a modest rise in optimism about exchange rate stability and borrowing conditions, with respondents expecting gradual appreciation of the naira and a slight easing in credit costs. Sectors such as mining, construction, and agriculture projected stronger expansion and higher employment over the coming months.
The survey, conducted between October 6 and 10, covered 1,900 enterprises across Nigeria, spanning industry, services, and agriculture. While the findings reflect respondents’ opinions rather than the CBN’s official stance, they offer valuable insight into the realities shaping Nigeria’s business environment — one where resilience persists despite persistent insecurity, poor infrastructure, and economic headwinds.
source: Punch