Insecurity and erratic power supply have emerged as the leading challenges for Nigerian businesses in October 2025, according to the latest Business Expectations Survey (BES) by the Central Bank of Nigeria (CBN). Firms across key sectors identified insecurity as the top obstacle at 71.8 points, followed closely by insufficient power supply at 70.9 points, highlighting persistent operational risks for companies nationwide. High taxes, steep interest rates, and financial challenges also ranked among the top concerns.
Despite these obstacles, the CBN report revealed a noticeable improvement in business confidence. The Overall Business Confidence Index (BCI) rose to 38.5 points in October from 31.5 in September, reflecting optimism about macroeconomic conditions. Firms anticipate continued growth, with confidence projected to reach 45.6 points in November and over 52 points in the coming six months, driven by expectations of increased demand, higher sales, and a rebound in consumer activity.
Sectoral sentiment shows varying degrees of optimism. The industrial sector led with 40 points, followed by agriculture at 38.1 and services at 37.6. Regionally, the North-East recorded the highest confidence at 56.1 points, while the South-South lagged at 23.3 points due to reduced output in oil-producing areas. Overall, businesses in Nigeria appear cautiously positive, with industrial and agricultural firms driving much of the recovery outlook.
Employment and expansion plans are also improving, the survey showed. Mining and Quarrying firms reported the highest expansion outlook at 80 points, while the Construction sector led in employment expectations with 36.8 points. Average capacity utilisation increased slightly to 62% in October from 60.4% in September, suggesting gradual recovery in industrial output and production activity across sectors.
The BES further indicated a cautiously optimistic view of exchange rate and borrowing conditions. Businesses expect gradual naira appreciation over the next six months, alongside a stable borrowing environment. Conducted between October 6 and 10 with a nationwide sample of 1,900 enterprises, the survey reflects business sentiments rather than official CBN policy, providing crucial insight into the challenges and opportunities shaping Nigeria’s economic landscape.
source: nairametrics