Businesses across Nigeria have identified poor electricity supply and insecurity as their biggest operational challenges in March 2026, according to the Central Bank of Nigeria’s latest Business Expectations Survey released on Thursday.
Despite these challenges, firms say they remain broadly optimistic about the economy’s direction.
The survey revealed that unreliable power supply ranked highest among business constraints, followed closely by insecurity. Other major concerns include high and multiple taxes, high interest rates, and difficulties accessing finance.
According to the report, “Insufficient power supply (74.5), insecurity (70.9), high/multiple taxes (69.2), high interest rates (66.6), and financial problems (64.3)” were the top five issues affecting businesses during the period under review.
The survey, conducted between March 9 and 13, covered 1,900 companies across manufacturing, services, and agriculture, with nearly all participants responding.
Even with these difficulties, businesses maintained a positive outlook. The confidence index stood at 15.6 points in March, indicating cautious optimism, and is projected to rise significantly in the coming months.
Sector analysis showed that agriculture led in optimism, while all major sectors expect improved performance over the next six months.
Regionally, the North-East recorded the strongest business confidence, while the South-East was the only region with negative sentiment. However, all regions are still expected to improve in outlook going forward.
Firms also expressed expectations of higher business activity, improved financial conditions, better access to credit, and increased order volumes in the months ahead.
On employment, many businesses plan to expand hiring in April 2026, with mining and agriculture leading job creation intentions.
However, structural challenges remain a major concern. Companies also pointed to high bank charges, an unfavourable economic environment, unclear regulations, and political uncertainty as additional obstacles to growth.
Access to credit was ranked as the least severe constraint, although still a concern for many firms.
The Central Bank noted that addressing issues around power supply, security, and the business environment will be key to improving productivity and growth.
Respondents also expressed expectations of a stronger naira and more favourable borrowing conditions in the near term.
Average capacity utilisation stood at 52.5 percent, with manufacturing and agriculture performing slightly above average, while mining and utilities lagged behind.
The CBN stressed that the survey reflects the views of businesses and not its official policy position, but it highlights the need for sustained reforms to support economic stability and growth.
