Businesses across Nigeria are grappling with major operational challenges, with poor electricity supply and insecurity emerging as the biggest concerns in March 2026, according to a new survey by the Central Bank of Nigeria.
The report revealed that insufficient power supply ranked highest among business constraints, followed closely by insecurity, multiple taxation, high interest rates, and financial difficulties. These issues continue to weigh heavily on productivity and profitability across sectors.
The survey, which covered 1,900 firms in industry, services, and agriculture, showed that despite these hurdles, businesses remain cautiously optimistic about the economy. The confidence index stood at 15.6 points in March, with projections suggesting a stronger outlook of 43.9 points over the next six months.
Across sectors, agriculture recorded the highest level of optimism for the current period, while overall sentiment remained positive in the short to medium term. Regionally, businesses in the North-East expressed the strongest confidence, while the South-East recorded slightly negative sentiment. However, expectations point to improvement across all regions in the coming months.
Firms also signalled plans for growth, with many expecting increases in orders, business activity, and access to credit. Hiring intentions were positive as well, with sectors like mining and quarrying showing strong employment prospects, while agriculture led in expansion plans.
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Still, structural challenges persist. In addition to power and security issues, businesses cited high bank charges, unclear economic policies, and an unfavourable political climate as ongoing concerns. While access to credit remains a challenge, it was ranked lower compared to other constraints.
The report underscores the need for reforms, particularly in energy supply, security, and the broader regulatory environment, to support business stability and long-term growth.
On the financial side, respondents expressed optimism that the naira could strengthen against the dollar and that borrowing conditions may improve. Meanwhile, average capacity utilisation stood at 52.5 per cent, indicating moderate use of production capacity across sectors.
Overall, while Nigerian businesses are showing resilience and optimism, the survey highlights that addressing core structural issues remains critical to unlocking stronger economic performance.
