Insecurity has emerged as the most significant challenge confronting businesses in Nigeria, surpassing taxation, high interest rates and bank charges, the latest Business Expectations Survey of the Central Bank of Nigeria (CBN) said.

The findings underscore the extent to which risk management has become central to business survival in an economy increasingly shaped by structural vulnerabilities rather than demand-side pressures.

In the April edition of the survey, insecurity ranked highest among business constraints with an index score of 74.1. High and multiple taxes followed at 70.5, while high interest rates scored 67.4.

Businesses also cited high bank charges at 62.8 and stiff competition at 61.8 as major operational challenges.

According to the apex bank, the results indicate that “the business environment was shaped more by risk and cost pressures rather than by demand-related factors,” highlighting the persistent structural impediments facing enterprises across sectors.

The survey, conducted between April 6 and 10, sampled 1,900 firms spanning industry, services and agriculture, with a response rate of 99.4 per cent.

Despite the difficult operating environment, businesses maintained a cautiously positive outlook on the economy, although confidence moderated from the previous month.

The overall business outlook on the macroeconomy stood at 3.9 index points in April. Respondents projected stronger sentiment ahead, with confidence expected to rise to 16.9 points in the following month, 27 points over the next three months and 34.6 points within six months.

The improving sentiment was driven largely by expectations of expansionary policy measures, cited by 19 per cent of respondents, while access to finance and anticipated economic diversification accounted for 13 per cent each.

However, firms continued to express concerns over deeper structural risks. Energy-related challenges were identified as the most pressing concern by 35 per cent of respondents, followed by governance issues at 33 per cent and geopolitical uncertainties at 14 per cent.

The survey also revealed a sharp regional divergence in business sentiment. Sectoral analysis showed that the industry sector recorded the strongest confidence level at 8.8 index points, followed by agriculture at 2.7 points and services at 1.5 points.

Among subsectors, mining and quarrying posted the highest confidence reading on business operations at 65.2 index points, ahead of manufacturing at 33.2 points and agriculture at 32.9 points.

The CBN noted that it revised the survey methodology from April 2026, replacing the previous three-point Likert scale with a five-point weighted diffusion index to provide what it described as “a more nuanced reporting of respondent sentiments”.

Findings underscore the extent to which risk management has become central to business survival in an economy increasingly shaped by structural vulnerabilities rather than demand-side pressures.

In the April 2026 survey, insecurity ranked highest among business constraints with an index score of 74.1. High and multiple taxes followed at 70.5, while high interest rates scored 67.4. Businesses also cited high bank charges at 62.8 and stiff competition at 61.8 as major operational challenges.

According to the apex bank, the results indicate that “the business environment was shaped more by risk and cost pressures rather than by demand-related factors,” highlighting the persistent structural impediments facing enterprises across sectors.

The survey, conducted between April 6 and 10, sampled 1,900 firms spanning industry, services and agriculture, with a response rate of 99.4 per cent.

Despite the difficult operating environment, businesses maintained a cautiously positive outlook on the economy, although confidence moderated from the previous month.

The overall business outlook on the macroeconomy stood at 3.9 index points in April. Respondents projected stronger sentiment ahead, with confidence expected to rise to 16.9 points in the following month, 27 points over the next three months and 34.6 points within six months.

The improving sentiment was driven largely by expectations of expansionary policy measures, cited by 19 per cent of respondents, while access to finance and anticipated economic diversification accounted for 13 per cent each.

However, firms continued to express concerns over bigger structural risks. Energy-related challenges were identified as the most pressing concern by 35 per cent of respondents, followed by governance issues at 33 per cent and geopolitical uncertainties at 14 per cent.

The survey also revealed a sharp regional divergence in business sentiment. Sectoral analysis showed that the industry sector recorded the strongest confidence level at 8.8 index points, followed by agriculture at 2.7 points and services at 1.5 points.

Among subsectors, mining and quarrying posted the highest confidence reading on business operations at 65.2 index points, ahead of manufacturing at 33.2 points and agriculture at 32.9 points.

The CBN noted that it revised the survey methodology from April 2026, replacing the previous three-point Likert scale with a five-point weighted diffusion index to provide what it described as “a more nuanced reporting of respondent sentiments”.