Nigerian businesses grappled with multiple taxation, insecurity and high interest rates in September 2026, with the three factors emerging as the leading constraints to business activity during the month.

This was contained in the latest Business Expectations Survey (BES) of the Central Bank of Nigeria (CBN), which showed that despite the pressures confronting firms, business sentiment remained positive during the review period.

The survey put the Business Confidence Index (BCI) at 13.4 points in September, a slight decline from the previous month.

According to the survey, high or multiple taxation recorded the highest constraint index at 67.1 points, followed by insecurity at 66.2 points and high interest rates at 64.3 points.

An unfavourable political climate was the next major constraint, recording 61.8 points, while high bank charges stood at 61.5 points. Competition followed with 60.2 points, while unclear economic laws and an unfavourable economic climate each recorded 58.7 points.

Financial constraints and poor infrastructure ranked lowest among the top 10 constraints identified by businesses, with 57.5 points and 55.0 points, respectively.

Despite the challenges, the survey showed that firms remained optimistic about business conditions, with increased demand, economic diversification and access to finance identified as the major factors supporting the positive outlook.

“Respondents’ positive outlook could be attributed to increased demand (29.3%), economic diversification (18.9%) and access to finance (13.5%),” the report stated.

Sectoral performance showed that the industry sector recorded the greatest improvement in confidence during the month, with its confidence index rising from 17.1 points in August to 19.4 points in September.

However, confidence in the services sector moderated from 13.3 points to 10.2 points, while the agriculture sector declined from 13.9 points to 12.8 points.

Despite the varying movements across sectors, all three maintained positive business sentiment during the review period.

The report also noted that businesses expected confidence to improve further in the months ahead, projecting the Business Confidence Index at 23.6 points in December 2026 and 36.1 points by March 2027.

Regarding financing conditions, businesses expected borrowing rates to remain elevated throughout the review periods, although the survey indicated a modest reduction in borrowing costs over the next six months.

Firms also retained a positive outlook on the foreign exchange market, with respondents expecting the naira to appreciate modestly against the United States dollar over the forecast periods.

“Respondents anticipate that borrowing rates will remain high across all review periods, as evidenced by the sustained positive borrowing rate indices. However, there are expectations of a modest decline over the next six months.”

The regional outlook was also largely positive, as all regions expressed optimism about the macroeconomic environment in the coming month, except the South-East.

The North-East emerged as the most optimistic region across the forecast horizon.

Overall, the survey showed that Nigerian businesses remained cautiously optimistic about future operating conditions, even as taxation, insecurity and the cost of finance continued to weigh heavily on business activity.