A new report from the Central Bank of Nigeria reveals that the nation’s businesses are being fundamentally hampered by excessive financial burdens, with high bank charges and multiple taxes being cited as the most significant constraints on operations in September 2025. These two fiscal pressures, along with the perennial issue of poor infrastructure, formed a near-identical top three list of challenges, demonstrating the severe difficulties companies face in keeping costs down and operating efficiently across the country.
The official Business Expectations Survey Report indicates a widespread struggle for Nigerian enterprises, which continue to battle high operational expenses. Respondents in the survey highlighted the joint concerns of excessive bank charges and the burden of multiple or high taxes, with both constraints scoring an identical high mark in terms of perceived impact on business profitability. Poor or inadequate infrastructure was ranked only fractionally behind these financial pressures, emphasising that fundamental structural and fiscal issues remain the primary roadblocks to sustainable growth.
Despite these significant day-to-day obstacles, the overall mood amongst business owners shows a modest, cautious positivity. The survey’s Confidence Index for September 2025 registered a score of 31.5 index points. This figure suggests that firms anticipate a moderate improvement in the general macroeconomic environment in the immediate term. Furthermore, this optimism is projected to grow substantially over the subsequent six months, with the index forecast to peak at 51.8 points. This forward-looking data signals that while current conditions are difficult and demanding, respondents retain a belief in a more favourable economic future later in the year.
Looking beyond the top three, businesses also pointed to a range of other serious hurdles that complicate planning and expansion. Unfavourable economic policies were widely cited as a major concern, as were the significant difficulties caused by unpredictable exchange rate movements. These currency volatility issues make import-dependent operations particularly challenging and hinder long-term investment, creating uncertainty for any firm that deals in foreign trade. Additionally, firms reported continued problems with limited access to credit from financial institutions and ongoing concerns regarding inflationary pressures, which consistently erode purchasing power and increase the cost of goods and raw materials. Issues like general market competition and insufficient power supply were noted as constraints, but these ranked notably lower than the financial and policy-related burdens. This shows that the current environment is defined less by market dynamics and more by state-imposed financial and regulatory friction.
The CBN’s survey also highlighted a sharp geographical divide in business sentiment across Nigeria. The North-East region displayed the highest level of business optimism, recording a substantial 48.7 index points. Conversely, the South-East registered a starkly low confidence score of just 7.3 index points, reflecting a far more challenging operating environment. The Central Bank suggested this significant disparity in the South-East is likely connected to a higher concentration of business impediments in the region, including exacerbated issues with poor infrastructure and the prevalence of multiple taxation imposed at both the state and local government levels. This regional breakdown offers crucial insight for policymakers, indicating that economic experiences and regulatory environments are far from uniform across the country, requiring targeted solutions.
The Business Expectations Survey is an essential indicator for understanding the health of the Nigerian private sector and the wider economy. The sustained prominence of high bank charges, multiple taxation, and infrastructure deficits pose serious threats to achieving sustainable economic growth, even in the face of other positive economic indicators. These financial and fiscal constraints directly reduce business profitability, dampen enthusiasm for job creation, and discourage new investment, particularly for the Micro, Small, and Medium Enterprises (MSMEs) that form the backbone of the economy. High, unpredictable costs severely limit the capacity of firms to expand, innovate, or hire new staff, thereby undermining the potential positive impact of recent economic reforms.
It is important to note that these pessimistic reports on operational constraints exist alongside other promising economic data. The Central Bank’s most recent Purchasing Managers’ Index (PMI) for September 2025, for example, showed a continued expansion of the Nigerian economy. The PMI rose to 54.0 points, an increase from 51.7 points in August, marking the tenth consecutive month of growth. This Composite PMI expansion was reportedly driven by strong activity in the Industry, Services, and Agriculture sectors, reflecting an ongoing improvement in overall economic activity and business confidence nationwide. The contrasting nature of these two reports—one detailing crippling costs and the other charting economic expansion—provides a complex picture of Nigeria’s current economic trajectory. For regulators and government officials, the expectations survey is a vital tool for pinpointing specific areas where urgent policy intervention is required to unlock the economy’s full potential.
