Nigeria’s business sector enters 2026 with a surge in confidence, according to the December 2025 Business Expectations Survey (BES) report by the Central Bank of Nigeria. The Confidence Index reached 37.5 index points in December, signaling optimism despite significant operational hurdles like insecurity, high taxes, and infrastructure gaps. Projections suggest that confidence will peak at 52.5 points in the coming months, reflecting growth prospects across key industries such as agriculture, services, and manufacturing.
Optimism Across Sectors
The December survey, which sampled 1,900 businesses across Nigeria, revealed a positive sentiment in nearly all sectors. The industrial sector led with a confidence index of 38.7 points, followed by agriculture and services. These results indicate that businesses are anticipating growth despite the challenges they face. The expansion of business activity and the expected increase in hiring suggest that Nigerian companies are gearing up for growth, with agriculture expected to lead the way in sectoral expansion.
Challenges Weighing on Business Operations
Despite the optimism, businesses highlighted key challenges that continue to threaten operational stability. Insecurity remains the most pressing issue, with 74% of firms citing it as a major concern. Other significant hurdles include high taxes, insufficient power supply, and high interest rates. These constraints weigh heavily on profitability, yet Nigerian businesses remain focused on expansion, driven by the expectation of favorable currency fluctuations and lower borrowing costs in the near future.
Regional Variations in Optimism
Business confidence varies across regions, with the North-East reporting the highest optimism at 51.5 index points, while the South-East recorded the lowest at 27.9 points. Nonetheless, every region expressed positive expectations for the future, reflecting a broad-based optimism for Nigeria’s economic prospects.
The 2025 Business Expectations Survey paints a picture of resilience in Nigeria’s private sector. While businesses are aware of the challenges ahead, they remain focused on growth, expansion, and hiring. With key sectors like agriculture expected to drive future growth, Nigeria’s economy is poised for a more stable and prosperous future, despite the ongoing macroeconomic difficulties.
