Businesses across Nigeria have identified insecurity as their biggest operational challenge in April 2026, ahead of multiple taxation, high interest rates, and bank charges, according to the latest Business Expectations Survey released by the Central Bank of Nigeria.
The report stated that insecurity ranked highest among business constraints with an index score of 74.1, followed by high or multiple taxes at 70.5, high interest rates at 67.4, high bank charges at 62.8, and competition at 61.8.
According to the apex bank, the findings indicate that Nigeria’s business environment is currently shaped more by risk and cost pressures than by demand-related concerns.
The report said there was a need for improved security conditions, a more supportive fiscal environment, and reduced financing costs to strengthen business performance and investor confidence.
The survey was conducted between April 6 and April 10, 2026, covering 1,900 business enterprises across the industry, services, and agriculture sectors. The survey recorded a response rate of 99.4 per cent.
Despite the prevailing challenges, businesses maintained a positive outlook on the economy. The report noted that the Confidence Index remained positive in April 2026, although the pace of optimism slowed compared to the previous month.
All sectors surveyed expressed optimism about the macroeconomy, with the industry sector posting the highest confidence level. Respondents also projected improved business activity in May, July, and October 2026.
According to the report, the overall business outlook on the macroeconomy stood at 3.9 index points in April 2026. Projections for the next month, next three months, and next six months were estimated at 16.9, 27.0, and 34.6 index points respectively.
The CBN said optimism among businesses was largely driven by improved expansionary policy measures, better access to finance, and expectations of economic diversification.
However, firms raised concerns over persistent energy-related challenges, governance issues, and geopolitical uncertainties.
Sectoral analysis showed that the industry sector recorded the strongest confidence level at 8.8 index points during the current review period, followed by agriculture at 2.7 points and services at 1.5 points.
The report also highlighted regional differences in business sentiment. Firms in northern Nigeria expressed stronger optimism than those in the South, with the North-East recording the highest optimism levels across all review periods.
In contrast, businesses in the South-East and South-South recorded negative outlooks for the current month, posting index points of -11.9 and -10.6 respectively.
On business operations, the Mining and Quarrying sector recorded the highest confidence level at 65.2 index points, followed by manufacturing at 33.2 points and agriculture at 32.9 points.
Businesses also expressed positive sentiment regarding total orders, financial conditions, access to credit, and future business activities. The volume of business activity index for the next month stood at 23.3 points and is projected to rise to 29.6 points in the next three months and 38.2 points within six months.
Despite the positive outlook for expansion, firms remained cautious about employment generation.
The report stated that employment expectations were negative across all sectors and review periods. Manufacturing firms recorded an employment outlook index of -9.6 points, while construction firms posted -13.0 points. Mining and quarrying firms recorded the weakest employment outlook at -15.2 points despite leading expansion projections.
Meanwhile, the Mining and Quarrying sector posted the strongest expansion prospect at 84.6 points, followed by agriculture at 67.1 points and market services at 62.5 points.
On the foreign exchange outlook, respondents projected a gradual appreciation of the naira against the United States dollar across the review periods, although borrowing costs were expected to remain high.
The survey further showed that average capacity utilisation improved from 52.5 per cent in the previous month to 56.0 per cent in April 2026.
According to the report, the increase in capacity utilisation was driven mainly by high demand, seasonal operations, improved funding, and better operational efficiency.
The Mining and Quarrying sector, alongside Electricity, Gas and Water Supply, recorded the highest capacity utilisation at 66.2 per cent. Construction followed with 60.4 per cent, while agriculture and manufacturing recorded 56.8 per cent and 54.3 per cent respectively.
The apex bank also disclosed that the methodology for the Business Expectations Survey was enhanced from April 2026 through the adoption of a five-point weighted diffusion index, replacing the previous three-point Likert scale to provide more detailed reporting of business sentiments.
