Nigerian businesses remained cautious about current economic conditions in July as high taxation, insecurity and elevated interest rates continued to constrain operations, even as firms expressed stronger optimism about the months ahead.
The Central Bank of Nigeria’s July 2026 Business Expectations Survey showed that the Business Confidence Index stood at 5.7 points during the month, reflecting weak sentiment among businesses across the country.
The survey, conducted from July 6 to 10 among 1,900 businesses across the industry, services and agriculture sectors, showed that high or multiple taxation was the biggest constraint faced by firms, with an index of 70.8.
Insecurity ranked second at 69.7, while high interest rates followed at 66.3. Unfavourable political conditions and high bank charges also remained significant pressures on businesses.
The findings highlight the persistent cost and operating pressures facing Nigerian companies despite signs of improving economic activity.
Inflation was the biggest factor shaping firms’ assessment of the macroeconomic environment, accounting for 27.7 percent of responses. Energy-related challenges accounted for 23.4 percent, while insecurity contributed 22.4 percent and elevated geopolitical uncertainties 16.5 percent.
Despite these challenges, businesses remained more optimistic about their future prospects. The CBN survey showed that the national Business Confidence Index is expected to rise to 20.0 points in August, 27.8 points over the next three months and 35.8 points over the next…
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Read Full Article by Muhammed Lawal at businessday.ng
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