THE CBN SURVEY ON BUSINESSES
The authorities must address issues of power and security
Going by the latest Central Bank of Nigeria (CBN) survey, these are not the best of times for Nigerian businesses in both the formal and informal sectors. From large concerns to Medium, Small and Micro Enterprises (MSMEs), according to the survey, they are buffeted by multifaceted challenges, ranging from high operational costs in terms of energy, multiple taxation and growing insecurity, among others. While these challenges continue to exert their toll, the long-standing issues of insecurity and poor electricity supply have come tops as the most severe constraint affecting business operations in Nigeria.
Conducted between 9th and 13th March 2026, the latest CBN Business Expectations Survey covered 1,900 firms across industry, services, and agriculture, with a response rate of 99.7 per cent. “Respondents identified insufficient power supply (74.5), insecurity (70.9), high/multiple taxes (69.2), high interest rate (66.6), and financial problems (64.3) as the top five business constraints in March 2026, highlighting factors that directly impact operational stability and profitability,” the report revealed while recommending key reforms to address these critical areas. “Overall, the findings in the review period highlight the need for improvements in energy supply, security conditions, and the regulatory/financial environment to enhance business stability and profitability.”
The survey findings underscore the entrenched and seemingly interminable strain Nigerian businesses are subjected to by a hostile operating ecosystem. Unfortunately, the situation is getting worse, especially with top military officers now easy game for Boko Haram insurgents while kidnapping for ransom has become a routine. From children to parents and grandparents, practically anybody could be a victim as long as the person has a relation that could be pressured to part with money.
The insecurity that pervades the entire country is not only dimming the local economy but also scaring away foreign investments and increasing the cost of doing business. The World Investment Report of the United Nations Conference on Trade and Development (UNCTAD) reckons that Nigeria has lost several trillions of Naira due to the activities of sundry cartels of criminal gangs. Even so, how do you put a cost to the millions of people that have been dislodged from their jobs and homes, children whose lives have been cut short, and the millions of others that are slipping into the poverty net? Or indeed the cost of mobilising and deploying the military troops to almost all the 36 states in a federation that is not at war with any country but itself?
The spate of attacks, especially on rural communities across the country, has gradually brought the average citizen to the Hobbesian state where life has become brutish and short. The impact on their means of livelihood compounds the situation. Since it is impossible to carry out farming activities under an insecure environment, it is also no surprise that domestic agricultural production has been stifled with dire consequences. But perhaps the biggest challenge is in the power sector where despite the investment of several billions of dollars, the nation remains in darkness.
With everybody supplying their own electricity, our country has indeed been one of the toughest places in the world to do business. Many small and medium scale businesses have been crippled due to the prohibitive cost of generating their own power. Even the big business ventures, particularly the manufacturing ones, feel the biting effect of energy poverty with consequences stretching to every part of the economy. Lack of electricity has also limited access to healthcare, education, and other opportunities for most Nigerians.
To the extent that a thriving business ecosystem is a major incentive for job-led economic growth and national prosperity, critical stakeholders in the country should be concerned by the issues highlighted in the latest CBN survey.
