Businesses across Nigeria identified inadequate electricity supply and insecurity as their most pressing operational challenges in March 2026, despite maintaining a broadly positive outlook on the economy, according to the latest Business Expectations Survey released by the Central Bank of Nigeria on Thursday.
The report stated, “Respondents identified Insufficient Power Supply (74.5), Insecurity (70.9), High/Multiple Taxes (69.2), High Interest Rate (66.6), and Financial Problems (64.3) as the top five (5) business constraints in March 2026, highlighting factors that directly impact operational stability and profitability.”
The survey, conducted between March 9 and 13, 2026, covered 1,900 firms across industry, services, and agriculture, with a response rate of 99.7 per cent. Despite these constraints, businesses remained optimistic about the macroeconomic environment.
The CBN noted that the confidence index stood at 15.6 points in March, reflecting positive sentiment, although slightly moderated compared to the previous month. The optimism is projected to rise to 43.9 points over the next six months.
Sectoral analysis showed that all sectors expressed confidence in the macroeconomy, with agriculture recording the highest optimism for the current month. The outlook across sectors remained positive in the near and medium terms, signalling sustained economic activity.
On regional performance, the survey showed that optimism was strongest in the North-East, which recorded 39.4 index points, while the South-East lagged behind with negative sentiment at –5.5 points.
However, all regions are expected to record improved outlooks in the coming months.
The report also highlighted that firms anticipate growth in business activity. Respondents expressed positive expectations for volume of orders, business activity, financial condition, and access to credit during the review period, with projections indicating stronger performance in the next six months.
Employment and expansion indicators were similarly upbeat. Businesses signalled plans to increase hiring in April 2026, driven by expansion expectations. The Mining and Quarrying sector recorded the highest employment prospects, while agriculture showed the strongest expansion plans.
However, the CBN emphasised that structural challenges continue to weigh on business performance. Beyond power shortages and insecurity, firms cited high bank charges (63.5), an unfavourable economic climate (62.0), unclear economic laws (61.6), and an unfavourable political climate (60.4) among the top constraints.
At the lower end of the constraints ranking was access to credit, with an index of 57.7, indicating that while financing remains a challenge, it is less severe relative to other constraints.
The apex bank noted that the findings underscore the need for reforms in key areas. “Overall, the findings in the review period highlight the need for improvements in energy supply, security conditions, and the regulatory/financial environment to enhance business stability and profitability,” the report added.
On exchange rate expectations, respondents projected that the naira would appreciate against the US dollar across the review periods. Firms also expressed a positive outlook on borrowing rates, suggesting expectations of a more favourable financing environment.
Meanwhile, average capacity utilisation across sectors stood at 52.5 per cent in March 2026, reflecting moderate use of installed capacity. Manufacturing recorded 54.4 per cent, agriculture 53.9 per cent, construction 52.7 per cent, while mining and quarrying, including electricity and water supply, posted 48.9 per cent.
The survey clarified that its findings represent the views of participating firms and do not necessarily reflect the position of the CBN.
