(DDM) – Nigerian businesses are facing intensified financial pressures as high bank charges, multiple taxation, and poor infrastructure continue to undermine growth and profitability across the country, according to the Central Bank of Nigeria’s latest Business Expectations Survey Report.
Diaspora Digital Media (DDM) reports that the CBN’s September 2025 findings ranked high bank charges (70.8), multiple taxation (70.8), and poor infrastructure (70.7) as the three most severe obstacles confronting business owners nationwide.
The report highlights how these structural burdens have compounded the already challenging business environment, eroding margins, discouraging new investments, and limiting expansion opportunities, particularly for micro, small, and medium enterprises (MSMEs), which constitute the backbone of Nigeria’s economy.
Despite these challenges, business operators expressed cautious optimism about the short-term economic outlook, as reflected in the Business Confidence Index, which stood at 31.5 points in September 2025.
According to the survey, business sentiment could strengthen further, with confidence projected to rise to 51.8 index points within the next six months, provided economic reforms and policy stability are maintained.
However, regional disparities in optimism remain stark. The North-East region recorded the highest business optimism at 48.7 points, while the South-East trailed significantly with just 7.3 points, reflecting deep-rooted concerns about taxation and poor infrastructure at both state and local government levels.
The CBN observed that the uneven optimism mirrors the varying intensity of business constraints across Nigeria’s six geopolitical zones, noting that entrepreneurs in southern states face heavier fiscal pressures and logistical bottlenecks.
Economic experts say the findings reinforce longstanding complaints from Nigeria’s private sector. Development economist Bismarck Rewane noted that the high cost of doing business continues to “erode competitiveness and discourage both foreign and local investment.”
He warned that the combination of multiple taxation, high banking fees, and unpredictable fiscal policies is pushing many small firms to the brink of collapse.
“Without targeted reforms,” Rewane said, “the projected business optimism may not translate into tangible economic recovery or job creation.”
Similarly, financial analyst Toki Mabogunje stressed the urgent need to simplify Nigeria’s tax system and channel more investment into infrastructure financing, particularly in roads, power supply, and logistics.
“What we’re witnessing is a widening disconnect between economic optimism and the actual realities faced by businesses,” she said.
“Policymakers must close this gap fast if Nigeria hopes to achieve sustainable growth.”
Meanwhile, the CBN’s Purchasing Managers’ Index (PMI) offered a glimmer of hope, rising to 54.0 points in September 2025 from 51.7 points in August, signaling the tenth consecutive month of expansion in business activity.
The central bank attributed the PMI growth to stronger performance across Industry, Services, and Agriculture, sectors that collectively drive national output and employment.
However, analysts caution that the positive PMI momentum may be short-lived if structural constraints remain unresolved.
According to investment strategist Johnson Chukwu, “An expanding PMI reflects optimism, but sustained progress requires deliberate government action to ease cost pressures on businesses, improve infrastructure, and streamline tax regimes.”
The CBN emphasized that the Business Expectations Survey serves as a key barometer for policymakers to understand the pulse of the private sector and identify reform priorities essential for stabilizing the economy.
Experts conclude that unless fiscal and monetary authorities act decisively to lower operational costs, Nigeria’s business optimism will remain fragile, threatening growth, job creation, and investor confidence in Africa’s largest economy.
