A recent survey by the Central Bank of Nigeria (CBN) has highlighted the major challenges facing businesses in the country. The Business Expectations Survey Report for September 2025 identified high taxes, bank charges, and inadequate infrastructure as the top constraints hindering business operations.
According to the report, respondents cited high bank charges (70.8%), high or multiple taxes (70.8%), and poor infrastructure (70.7%) as the most significant challenges. Despite these obstacles, the Confidence Index indicated a level of optimism among businesses, standing at 31.5 index points in September 2025. Regional variations in confidence levels were noted, with businesses in the North-East showing the highest level of optimism at 48.7 index points, while those in the South-East recorded the lowest at 7.3 index points.
The CBN attributed the low optimism in the South-East to a higher prevalence of business constraints, including poor infrastructure and multiple taxation at state and local levels. Other notable constraints identified by businesses included unfavourable economic policies (64.9%), unpredictable exchange rate movements (62.3%), limited access to credit (58.5%), and inflationary pressures (55.6%).
In contrast, competition (40.4%) and insufficient power supply (37.8%) were less frequently cited as major concerns. The survey also projected a rise in optimism to 51.8 index points over the next six months, indicating cautious confidence among respondents about future economic conditions.
Nigeria’s economy continued to show upward momentum in September 2025, with the Purchasing Managers’ Index (PMI) rising to 54.0 points, according to the CBN’s latest report. This marked the tenth consecutive month of expansion, with the index increasing from 51.7 points in August. The growth in the Composite PMI was driven by strong performances across the Industry, Services, and Agriculture sectors, reflecting a continued improvement in overall economic activity and business confidence nationwide.
The survey’s findings underscore the need for policymakers to address the pressing issues affecting businesses in Nigeria, particularly in relation to taxation, infrastructure, and access to credit. As the country’s economy continues to evolve, it is essential to monitor these trends and respond with targeted interventions to foster a more conducive business environment.