Business owners have identified a series of significant challenges hindering their operations in February 2025, with high interest rates, insecurity, insufficient power supply, heavy taxation, financial instability, and high bank charges topping the list.
The findings were revealed in the Central Bank of Nigeria’s (CBN) latest Business Expectations Survey Report, which provides a snapshot of the business climate for the month.
According to the report, 75% of respondents cited high interest rates as the most pressing constraint, while insecurity was not far behind, affecting 73.9% of businesses. Insufficient power supply followed closely at 73.8%, with high taxes impacting 73% of businesses. Financial challenges were highlighted by 68.5% of business owners, and an overwhelming 76.6% pointed to high bank charges as a significant issue.
Despite these persistent obstacles, businesses remain cautiously optimistic. They expect to see job growth in March 2025, with the construction sector leading the way, projected to see the highest increase in employment at 23.6%. The mining and quarrying sectors also anticipate growth, with businesses in these fields most likely to expand their operations in the coming months.
The outlook for the broader economy remains mixed. While businesses are hopeful for a stronger naira, they expect borrowing costs to rise. The CBN’s survey suggests that businesses are generally looking to expand, with 76.5% of respondents planning to increase their operations. However, many remain wary of the macroeconomic challenges ahead.
In terms of inflation, the National Bureau of Statistics (NBS) reported a slight dip in the headline inflation rate, which fell from 24.48% in January 2025 to 23.18% in February 2025, a decrease of 1.30%. Food inflation also showed a significant reduction, dropping to 23.51% year-on-year in February 2025, down from 37.92% in February 2024. However, food inflation on a month-to-month basis rose by 1.67%, indicating that prices are still rising despite the overall decline.
While the report highlights the ongoing economic difficulties faced by businesses, it also reflects a sense of resilience and hope for growth as they navigate these complex challenges in the months ahead
