Exchange Rate Stability and Rising Demand Boost Nigerian Business Confidence – CBN Survey

Businesses across Nigeria are showing strong optimism for the coming months, fueled by improving demand, easing cost pressures, and expectations of a more stable macroeconomic environment, according to the latest Business Expectations Survey (BES) by the Central Bank of Nigeria (CBN). The survey, which captures sentiments from firms across key sectors, indicates that many companies are preparing to expand operations in early 2026.

The BES report highlights that firms anticipate growth in production and commercial activity, with respondents expressing confidence in higher volumes of business. Many companies are also expecting to increase their workforce as part of expansion plans, signaling a positive employment outlook in the near term. “Employment outlook remains positive,” the report noted, reflecting widespread confidence across industry, services, and agriculture sectors.

A major factor supporting this optimism is the expectation of more stable exchange rate conditions, which businesses believe will reduce uncertainty around costs and improve financial planning. Firms are also anticipating moderation in input prices, which could ease pressure on operating margins and support profitability. Improved demand conditions were cited as a key driver of expected sales growth.

Despite the positive sentiment, companies are not blind to ongoing challenges. High interest rates, insecurity, inconsistent power supply, and infrastructural bottlenecks remain significant hurdles affecting operations. Nevertheless, businesses are confident that these constraints will not overshadow prospects for growth, especially given the anticipated macroeconomic stability.

Overall, the CBN’s survey paints a picture of cautious optimism among Nigerian businesses. With expectations of stronger demand, stable exchange rates, and potential employment growth, firms are positioning themselves to take advantage of expanding economic opportunities in the months ahead. The findings suggest a resilient private sector ready to contribute to broader economic recovery.

source: Leadership