Business Confidence in Nigeria Climbs as CBN Survey Signals Stronger Economic Outlook Despite Rising Costs
Nigeria’s business community showed renewed optimism in May 2026 as confidence levels improved significantly despite ongoing concerns over insecurity, high borrowing costs, and multiple taxation. The latest Business Expectations Survey released by the Central Bank of Nigeria (CBN) revealed that the Business Confidence Index (BCI) rose to 7.9 points in May from 3.9 points recorded in April, reflecting growing faith in the country’s economic direction.
According to the survey, improved perceptions of government policies and progress in economic diversification played a major role in boosting business sentiment. Many businesses expressed confidence that ongoing reforms could create a more stable environment for growth, even as challenges such as energy shortages and geopolitical uncertainties continue to affect daily operations across various sectors.
The report showed positive expectations across all major sectors of the economy. Agriculture recorded one of the strongest improvements, with confidence rising from 2.7 to 9.4 index points, while the services sector increased from 1.5 to 4.6 points. Industrial businesses also reported stronger optimism, with confidence climbing from 8.8 to 12.5 points. Looking ahead, businesses remain positive about economic prospects over the next six months, signaling expectations of sustained growth and improved market conditions.
Despite the upbeat outlook, many firms continue to grapple with serious operational challenges. Insecurity emerged as the biggest concern among respondents, followed closely by high and multiple taxes, elevated interest rates, unfavorable political conditions, and increasing bank charges. Financial constraints and poor infrastructure also ranked among the top obstacles limiting business expansion and profitability. The survey further revealed that employment expectations remain cautious, particularly within the non-market services sector.
Regional data highlighted mixed sentiment across the country, although long-term optimism remained strong. While the South-East expressed caution regarding near-term economic conditions, other regions reported positive expectations, with the North-East emerging as the most optimistic. Businesses also expect the naira to strengthen gradually against the U.S. dollar in the coming months. These findings align with recent reports from the Nigerian Economic Summit Group and the National Bureau of Statistics, which showed improving business conditions and a 3.89% year-on-year GDP growth in the first quarter of 2026, reinforcing confidence in Nigeria’s economic recovery.
source: nairametrics