Multiple taxation, insecurity, and high interest rates are the top three business constraints in Nigeria, severely dampening corporate activity across sub-Saharan Africa’s key industrial hubs.
According to the Central Bank of Nigeria July 2026 Business Expectations Survey, taxation ranked highest at 70.8 points, followed closely by insecurity at 69.7 points and prohibitive borrowing rates at 66.3 points.
Despite these structural impediments, overall corporate sentiment maintained positive momentum, recording a overall Business Confidence Index of 5.7 points for the current month.
Sector-by-sector confidence varied markedly across the economic landscape. Industry recorded solid sentiment at 11.5 index points, while Services posted 3.6 points and Agriculture moderated sharply to 3.4 points.
Internal operational confidence was highest in the Electricity, Gas, and Water Supply sector at 59.4 points, followed by Mining & Quarrying at 50.0 points.
The utility sector also demonstrated the strongest operational capacity, leading expansion expectations for August 2026 with 85.7% of surveyed firms planning business growth.
Medium-term macro expectations remain robust across all sectors, rising to 20.0 points for August, 27.8 points over three months, and 35.3 points across six months.
This sectoral optimism is driven by rising consumer demand and economic diversification, offsetting concerns over double-digit inflation, elevated energy costs, and persistent geopolitical uncertainty.
The findings emerge as the government pursues tax simplification and structural reforms, while monetary policy maintains tight liquidity to stabilize regional exchange rates.
