Nigerian businesses have identified multiple taxation, insecurity and high interest rates as their biggest challenges, according to the latest Business Expectations Survey by the Central Bank of Nigeria (CBN).
The survey, which assessed business conditions in September 2026, showed that companies continued to face significant pressure despite maintaining a positive outlook about the economy. The overall Business Confidence Index stood at 13.4 points during the month.
Multiple taxation ranked as the biggest constraint, recording 67.1 points. Insecurity followed with 66.2 points, while high interest rates recorded 64.3 points.
Other concerns identified by businesses included an unfavourable political climate, high bank charges, competition, unclear economic regulations, financial constraints and poor infrastructure.
Despite these challenges, businesses remained hopeful about the future. The CBN said firms’ optimism was mainly supported by increased demand, economic diversification and improved access to finance.
Increased demand accounted for 29.3 per cent of the factors supporting positive business expectations, while economic diversification contributed 18.9 per cent and access to finance accounted for 13.5 per cent.
The industry sector recorded the strongest improvement in confidence during the month. However, businesses in the services and agriculture sectors also maintained positive sentiment.
The survey also revealed that businesses expect the naira to record modest gains against the US dollar over the coming months. This reflects growing confidence in the stability of the foreign exchange market.
However, borrowing costs remain a major concern. Businesses expect interest rates to remain relatively high in the short term, although they anticipate some reduction over the next six months.
The findings come as the Federal Government continues efforts to reform Nigeria’s tax system and reduce the burden of multiple taxation on businesses.
For many companies, particularly small and medium-sized businesses, high taxes and expensive credit can make it difficult to expand, employ more workers or invest in new equipment.
The CBN survey therefore presents a mixed picture: Nigerian businesses are becoming more confident about the economy, but significant challenges remain. Addressing taxation, insecurity and the cost of borrowing could be critical to sustaining business growth and attracting new investment.
