Businesses in Nigeria identified unreliable electricity supply and insecurity as their most significant operational constraints in March 2026, according to the latest Business Expectations Survey released by the Central Bank of Nigeria on April 10, 2026.
The survey, conducted between March 9 and March 13, covered 1,900 firms across the industry, services, and agriculture sectors, with a response rate of 99.7 percent. It provides a snapshot of private sector sentiment and operating conditions during the period under review.
According to the report, 74.5 percent of respondents cited insufficient power supply as a major challenge, underscoring the persistent strain unreliable electricity places on productivity and cost structures. Insecurity followed closely, flagged by 70.9 percent of businesses, reflecting ongoing concerns about safety, logistics disruptions, and asset protection.
Other key constraints included high or multiple taxation, identified by 69.2 percent of respondents, elevated borrowing costs at 66.6 percent, and broader financial pressures affecting 64.3 percent of firms. Together, these factors point to a difficult operating environment, even as firms continue to navigate macroeconomic adjustments.
Despite these headwinds, business sentiment remained in positive territory. The confidence index stood at 15.6 points in March, indicating cautious optimism, though slightly lower than in February. Expectations for the next six months were stronger, with the index projected to rise to 43.9 points, suggesting anticipated improvements in business conditions.
Sectoral data showed broad-based confidence across the economy. Agriculture recorded the highest level of optimism for the current month, while industry and services also maintained positive outlooks. The forward-looking indicators suggest sustained activity levels in the near term, supported by expectations of improved demand and operating conditions.
Regional variations were pronounced. Firms in the North-East expressed the strongest optimism, with an index reading of 39.4 points, while the South-East recorded negative sentiment at minus 5.5 points, highlighting uneven economic conditions across the country. However, expectations for all regions point to improved performance in the coming months.
Businesses also projected growth in key performance indicators. Respondents reported positive expectations for order volumes, overall business activity, financial conditions, and access to credit during the review period. These indicators are expected to strengthen further over the next six months, reinforcing the overall outlook of gradual economic recovery despite structural constraints.