CBN survey: Power failure, insecurity cripple businesses

Businesses in Nigeria have identified unreliable Businesses in Nigeria have identified unreliable electricity supply and insecurity as their most critical challenges in March 2026, even as overall confidence in the economy remains positive, according to the latest Business Expectations Survey released by the Central Bank of Nigeria (CBN). supply and insecurity as their most critical challenges in March 2026, even as overall confidence in the economy remains positive, according to the latest Business Expectations Survey released by the Central Bank of Nigeria (CBN).

The report shows that insufficient power supply topped the list of constraints with a score of 74.5, followed by insecurity (70.9), high and multiple taxes (69.2), high interest rates (66.6), and financial challenges (64.3). These issues, respondents noted, continue to directly affect business operations and profitability.

The survey, conducted between March 9 and 13, 2026, covered 1,900 firms across the industrial, services, and agricultural sectors, achieving an impressive response rate of 99.7 percent. Despite the operational hurdles, businesses maintained a positive outlook on the macroeconomic environment.

According to the CBN, the confidence index stood at 15.6 points in March, indicating optimism, though slightly lower than the previous month. However, sentiment is expected to strengthen significantly, with projections rising to 43.9 points over the next six months.

Sectoral analysis revealed broad-based optimism, with all sectors expressing confidence in the economy. The agricultural sector recorded the highest level of optimism for the current period, while outlooks across industries remain positive in both the short and medium term.

Regionally, the North-East posted the strongest confidence level at 39.4 points, while the South-East recorded negative sentiment at –5.5 points. Nonetheless, all regions are expected to see improved business conditions in the coming months.

The survey also indicated that firms anticipate growth in key performance areas, including volume of orders, overall business activity, financial conditions, and access to credit. Expectations point to stronger performance in the next six months.

Employment prospects were equally encouraging, with many firms planning to increase hiring in April 2026 to support expansion. The mining and quarrying sector showed the strongest hiring outlook, while agriculture led in expansion plans.

However, the apex bank stressed that structural challenges persist. In addition to power and security concerns, businesses highlighted high bank charges (63.5), an unfavourable economic environment (62.0), unclear regulatory frameworks (61.6), and political uncertainties (60.4) as major constraints.

Access to credit ranked lower on the list with a score of 57.7, suggesting it remains a concern but is less pressing compared to other issues.

The CBN noted that the findings underscore the urgent need for reforms, particularly in energy supply, security, and the regulatory and financial environment, to enhance business stability and profitability.

On the macroeconomic front, respondents expressed expectations of a stronger naira against the US dollar and a more favourable borrowing environment in the months ahead.

Meanwhile, average capacity utilisation across sectors stood at 52.5 percent in March, indicating moderate use of installed capacity. Manufacturing led with 54.4 percent, followed by agriculture at 53.9 percent, construction at 52.7 percent, while mining and quarrying—including electricity and water supply—recorded 48.9 percent.