High and multiple taxation has remained the biggest challenge confronting businesses in Nigeria, according to the latest Business Expectations Survey released by the Central Bank of Nigeria (CBN).
The finding comes despite ongoing Federal Government efforts to reform Nigeria’s tax system and create a more business-friendly environment.
According to the July 2026 survey, businesses ranked high and multiple taxation at 70.8 points, placing it ahead of insecurity, which scored 69.7 points, and high interest rates at 66.3 points.
Tax Burden Remains a Major Concern
The latest findings suggest that businesses continue to struggle with the financial burden associated with taxes and levies imposed across different levels of government.
Multiple taxation has been a longstanding concern among Nigerian businesses, particularly small and medium-sized enterprises.
Companies argue that overlapping taxes and charges increase operating costs and make it more difficult for businesses to invest, expand operations and employ additional workers.
The CBN survey indicates that these concerns remain significant despite the government’s tax reform initiatives.
Insecurity Ranks Second
Insecurity emerged as the second-largest constraint identified by businesses during the period under review.
The issue affects companies in several ways, including increased security expenses, disruption of supply chains, damage to business assets and difficulties transporting goods and personnel.
For businesses operating in areas affected by insecurity, maintaining normal operations can become considerably more expensive.
The CBN’s findings therefore demonstrate that the business environment continues to be affected by both fiscal pressures and security challenges.
High Interest Rates Add to Pressure
High interest rates ranked third among the major constraints, recording 66.3 points.
Elevated borrowing costs can make it difficult for companies to obtain affordable financing for expansion, equipment purchases, working capital and other investments.
This is particularly important for smaller businesses, which often depend heavily on bank financing and other forms of credit to maintain operations.
Other Business Constraints
Businesses also identified an unfavourable political climate and high bank charges among their significant challenges.
Unfavourable political conditions recorded 62.2 points, while high bank charges scored 62.0 points.
Competition and unclear economic laws were also identified as constraints, recording 61.1 and 58.4 points respectively.
Interestingly, financial constraints and poor infrastructure recorded lower scores among the listed challenges, although they remain important concerns for businesses across the country.
Businesses Remain Optimistic
Despite the difficult operating environment, the CBN survey found that businesses maintained a positive level of confidence about economic prospects.
The optimism was linked to factors including increased demand, economic diversification and improved access to finance.
However, businesses continued to express concerns about inflation, energy-related challenges, insecurity and geopolitical uncertainties.
This suggests that Nigerian businesses see opportunities for growth but remain concerned about the costs and risks associated with operating in the country’s economy.
Need for a More Predictable Business Environment
The latest survey highlights the importance of creating a simpler and more predictable regulatory environment.
For businesses to expand and create more jobs, stakeholders need greater clarity around taxation, financing, regulation and security.
Effective implementation of the Federal Government’s tax reforms could therefore become critical in determining whether businesses experience meaningful relief from multiple taxation.
Reducing overlapping taxes and improving coordination among government agencies could also help lower the cost of doing business.
For Nigerian businesses, the message from the CBN survey is clear: taxation, security and financing costs remain major obstacles to growth.
Addressing these challenges could strengthen investor confidence, encourage business expansion and support the government’s broader efforts to achieve sustainable economic growth.
