Power and Insecurity Threaten Business Stability in Nigeria – CBN Report
The Central Bank of Nigeria (CBN) has revealed that insecurity and erratic power supply remain the biggest threats to business stability and profitability across the country. According to its October 2025 Business Expectations Survey, insecurity ranked highest at 71.8 points, closely followed by poor power supply (70.9 points) and multiple taxation (70.2 points).
Other major hurdles identified include high interest rates (68.4 points), financial problems (65.6 points), and excessive bank charges (64.7 points). The report also noted that businesses were more troubled by economic pressures than political instability, reflecting a growing concern over Nigeria’s harsh business environment.
Signs of Optimism Despite Challenges
Despite these difficulties, the CBN survey recorded a rise in business confidence. The Overall Business Confidence Index climbed to 38.5 points in October, up from 31.5 points in September, showing that many firms still believe in better days ahead. Confidence is projected to reach 52.5 points in the next six months as companies expect higher demand and improved consumer activity.
The industrial sector led with the highest optimism at 40.0 points, followed by agriculture (38.1) and services (37.6). Regionally, the North-East recorded the highest optimism (56.1 points), while the South-South showed the lowest (23.3 points), reflecting weaker oil-related activities.
Expansion and Employment Outlook Brighten
Businesses also expressed readiness to hire more workers and expand operations. The Mining and Quarrying sector recorded the strongest expansion outlook (80.0 points), while the Construction sector topped employment projections at 36.8 points.
Average capacity utilization rose slightly to 62.0%, indicating better resource management and production activity. Firms also showed moderate optimism about the exchange rate, expecting the naira to appreciate gradually in coming months.
“Nigerian businesses are hopeful but need stronger infrastructure, stable power, and security to thrive,” the report suggests.
The CBN’s findings highlight the resilience of Nigerian entrepreneurs despite economic headwinds. For sustainable growth, addressing insecurity, improving electricity access, and reducing multiple taxation are essential. With the right reforms, the optimism reflected in this survey could translate into real economic recovery for Nigeria.
