Businesses across Nigeria have identified insecurity and inadequate electricity supply as their most pressing operational challenges in March 2026, according to the latest survey by the Central Bank of Nigeria (CBN).
Despite these constraints, firms expressed a broadly positive outlook on the economy, reflecting resilience amid persistent structural challenges.
Power, Insecurity Lead Business Constraints
Findings from the CBN’s Business Expectations Survey ranked insufficient power supply as the most critical concern, followed closely by insecurity.
Other major constraints include:
• High and multiple taxes
• Elevated interest rates
• Financial challenges
The report noted that these factors continue to directly affect business stability, operational efficiency, and profitability across sectors.
Survey Shows Strong Business Participation
The survey, conducted between March 9 and 13, 2026, covered 1,900 firms spanning industry, services, and agriculture, with a near-total response rate.
The CBN stated that the confidence index stood at 15.6 points in March, indicating positive sentiment, although slightly lower than the previous month. Businesses, however, project stronger optimism, with the index expected to rise significantly in the next six months.
Sectoral Outlook Remains Positive
All major sectors expressed confidence in the macroeconomic environment.
• Agriculture recorded the highest optimism for the current period
• Mining and quarrying showed strong employment prospects
• Expansion plans were most prominent in agriculture
Overall, businesses expect improvements in activity levels, including increased orders, better financial conditions, and enhanced access to credit.
Regional Sentiment Mixed
Regionally, the North-East recorded the strongest optimism, while the South-East showed weak sentiment during the review period.
However, projections indicate that all regions are likely to experience improved business conditions in the coming months.
Hiring, Expansion Plans Gain Momentum
Businesses signalled intentions to expand operations and increase hiring in April 2026, driven by expectations of improved economic performance.
This trend suggests that firms are positioning for growth despite prevailing operational challenges.
Structural Issues Persist
Beyond power supply and insecurity, firms highlighted additional challenges, including:
• High bank charges
• Unfavourable economic conditions
• Regulatory uncertainty
• Political climate concerns
While access to credit remains an issue, it ranked lower compared to other constraints, indicating relatively improved financing conditions.
Call for Policy Reforms
The apex bank emphasised the need for targeted reforms to address key structural bottlenecks.
Improving electricity supply, strengthening security, and stabilising the regulatory and financial environment were identified as critical steps to enhance business performance.
Exchange Rate, Capacity Utilisation Insights
Respondents expressed expectations that the naira would appreciate against the US dollar in the near term, alongside improved borrowing conditions.
Meanwhile, average capacity utilisation across sectors stood at 52.5 per cent, reflecting moderate usage levels.
• Manufacturing: 54.4%
• Agriculture: 53.9%
• Construction: 52.7%
• Mining and quarrying: 48.9%
