Businesses Stay Positive Despite High Taxes and Insecurity - CBN Report

Nigerian businesses kept a hopeful outlook in June 2026. They faced tough economic issues like high taxes, interest rates, and insecurity, according to the Central Bank of Nigeria (CBN).

These insights come from the June 2026 Business Expectations Survey (BES). The survey was done by the CBN's Statistics Department, which is part of the Economic Policy Directorate.

The BES took place from June 8 to June 12, covering 1,900 businesses across Nigeria.

The CBN improved the survey methods starting in April 2026. They changed from a three-point scale to a five-point scale to get a clearer picture of how businesses feel.

The report revealed that the Business Confidence Index (BCI) was at 7.2 points in June. This shows that businesses are still hopeful about the economy, even though their confidence dipped due to ongoing economic issues.

"The Business Confidence Index stood at 7.2 points in June 2026, signalling continued optimistic sentiment among formal businesses," the report said.

But the CBN noted that businesses pointed to high or multiple taxation (73.7 percent) as their biggest problem. Insecurity (71.7 percent) and high interest rates (67.0 percent) followed closely.

Other worries included an unfavorable political climate (63.5 percent), high bank charges (61.9 percent), poor infrastructure (58.5 percent), and financial constraints (58.2 percent).

"In June 2026, businesses identified High/Multiple Taxation (73.7 percent), Insecurity (71.7 percent), and High Interest Rates (67.0 percent) as the top three constraints.

"These were followed by Unfavourable Political Climate (63.5 percent) and High Bank Charges (61.9 percent). Poor Infrastructure (58.5 percent) and Financial Constraints (58.2 percent) ranked lower but remain significant," the report added.

According to the CBN, the positive feelings among businesses were mainly due to economic diversification (38.3 percent) and expansionary fiscal policy (16.2 percent).

On the other hand, cautious views came from energy-related challenges (23.4 percent) and high geopolitical uncertainties (16.5 percent).

Sectors and Regions

The report stated that all major sectors showed optimism about the economy and their own operations during the review period.

Among these sectors, mining and quarrying had the highest Business Confidence Index at 42.9 points. They also had the highest capacity utilization during the month.

The CBN noted that confidence remained positive across all sectors for the next six months. But industry and services sectors showed slower confidence levels in June compared to the previous month, going from 12.5 to 10.9 points.

In terms of regions, businesses in Northern Nigeria felt more confident than those in the South during the review month.

While all regions were hopeful about the next three and six months, the South-East and South-South regions had negative expectations for the following month. The North-East showed the strongest optimism for the medium-term outlook.

When it comes to business activity, the CBN said firms expect improvements in their operations in July, September, and December 2026. The volume of business activity index showed the highest confidence level among the selected indicators.

Although the Financial Condition Index and Credit Access Index were positive, they were lower than other indicators. This means financing conditions and access to credit still need attention.

Employment

The survey revealed mixed expectations for employment among Nigerian businesses.

While mining and quarrying had the strongest hiring outlook at 84.6 index points, hiring expectations in other sectors remained cautious for the near term.

"Employment expectations in July 2026 were generally cautious across sectors, with the Mining and Quarrying sector exhibiting the least optimistic hiring outlook," the report stated.

The survey also showed that businesses expect the naira to gradually appreciate against the US dollar during the review periods.

At the same time, respondents expect borrowing rates to stay high. The stable borrowing rate indices suggest a moderate increase in financing costs in the near to medium term.