Nigerian businesses are anticipating a stable and stronger naira alongside easing interest rates through 2026, projections that signal growing confidence in the country’s monetary policy direction.

These are contained in the Central Bank of Nigeria’s (CBN) November 2025 Business Expectations Survey.

The survey, which captured responses from 1,900 enterprises across the country with a 99.1 per cent response rate, revealed growing optimism among firms despite significant operational challenges.

The Business Confidence Index stood at 37.5 points for November 2025 and is expected to climb progressively to 52.8 points over the next six months, signalling sustained positive sentiment about the Nigerian economy’s trajectory.

Respondents indicated expectations that the naira would appreciate steadily against the dollar across all review periods. The exchange rate outlook index showed positive readings, suggesting firms anticipate currency stability in the coming months.

Similarly, businesses expect borrowing rates to ease gradually, with positive indicators recorded for the current month through the next six months.

By sector, the industry sector recorded the highest confidence level at 38.1 index points, followed by services at 37.5 points and agriculture at 36.3 points.

All three sectors maintained optimistic outlooks across all review periods, with industry sector confidence projected to reach 57 points within six months.

Regional analysis showed the North-East region leading with the highest optimism at 52.7 index points, while the South-East recorded the lowest at 18.7 points.

However, all regions reported positive expectations for the coming months, with North-East and North-West showing particularly strong confidence levels.

The mining and quarrying sector demonstrated the strongest confidence regarding own operations at 50 index points and recorded the highest capacity utilisation in November at 58.8 per cent.

The sector also showed the highest employment prospects, while Construction led in expansion plans with an index of 80.8 points.

Businesses expressed optimism about the volume of business activity, with positive indices of 43.4 for next month, 45.6 for the next three months and 49.5 for the next six months. This suggests firms anticipate sustained growth in economic activities.

Overall capacity utilisation across sectors averaged 50.1 per cent in November 2025, indicating moderate operational levels across the economy.

Despite the prevailing optimism, respondents identified substantial constraints hampering business operations. Insecurity topped the list at 70.1 index points, followed closely by high and multiple taxes at 69.7 points, insufficient power supply at 69.3 points, high interest rates at 67.2 points and financial problems at 64.7 points.

Other significant challenges included unfavourable economic climate, high bank charges, unclear economic laws, poor infrastructure, and unfavourable political climate, all scoring above 57 points on the constraints index.

The survey findings indicate that business constraints were more concentrated on financial factors than political challenges during the review period.