Businesses in Nigeria are optimistic about the country’s economic outlook but high interest rates, insecurity, and insufficient power supply continue to hinder growth.
According to the Business Expectations Survey (BES) report for June 2025 by the Central Bank of Nigeria, the Confidence Index stood at 20.7 index points in June, reflecting the positive feedback among respondents about the macroeconomy.
The report noted that this optimism is expected to continue over the next six months. Confidence in the industry and agriculture sectors is projected to more than double within that period, with the industry sector confidence index expected to rise from 23.1 to 48.3 index points, and the agriculture sector to 42.8 index points.
Respondents were optimistic that the volume of business activity for July 2025 and subsequent months will increase, signalling economic growth.
However, businesses still face challenges constraining them, including high interest rates, insecurity, and insufficient power supply were identified as the top three constraints to businesses, as the survey highlights ten major challenges constraining businesses:
- High Interest Rate: 75.6% of respondents identified this as their major constraint.
- Insecurity: 75.2% of respondents identified this as their major constraint.
- Insufficient Power Supply: 74.3% of respondents identified this as their major constraint.
- High Taxes: 73.2% of respondents identified this as their major constraint.
- Financial Problems: 68.9% of respondents identified this as their major constraint.
- High Bank Charges: 68.7% of respondents identified this as their major constraint.
- Unfavourable Economic Climate: 67.8% of respondents identified this as their major constraint.
- Unclear Economic Laws: 67.4% of respondents identified this as their major constraint.
- Unfavourable Political Climate: 62.5% of respondents identified this as their major constraint.
- Poor Infrastructure: 62.4% of respondents identified this as their major constraint.
The BES is a monthly survey of leading firms drawn from the Business Establishment frame of the Central Bank of Nigeria and the Nigerian Bureau of Statistics. The findings from the report reflect the current economic challenges affecting businesses in the country while identifying perceptions of businesses on economic indicators like inflation, exchange rate, among others.
