CBN: High interest rates, multiple taxes top business constraints in Sept

 

Businesses and households across Nigeria have identified high interest rates, multiple taxes, and poor infrastructure as the top challenges facing the economy in September 2025, according to the Central Bank of Nigeria (CBN).

The findings were contained in the CBN’s September 2025 Business Expectations Survey, which revealed that despite these challenges, business owners remain optimistic about the country’s macroeconomic outlook in the coming months.

The report stated:

“The Confidence Index stood at 31.5 points in September 2025, reflecting optimism among respondents regarding the macroeconomy. This optimism is expected to strengthen over the next six months, peaking at 51.8 index points.”

According to the CBN, respondents cited high bank charges (70.8%), multiple taxation (70.8%), and poor infrastructure (70.7%) as the three most pressing constraints on business operations.

Other concerns included insufficient power supply (37.8%) and market competition (40.4%), though these were considered less significant than financial pressures.

The apex bank noted that the findings suggest that “business challenges were more financially driven than politically induced during the review period.”

Households Expect Rising Prices Despite Eased Pessimism

The CBN’s Households Expectations Survey for September 2025 also showed that Nigerian families remain concerned about rising prices, although overall economic pessimism has eased slightly compared to the previous month.

“Consumer sentiment on price changes stood at -6.4 index points in September, up from -7.2 in August, indicating reduced pessimism among respondents,” the report noted.

Respondents expect prices to continue rising in the next one, three, and six months.

Other key highlights include:

Economic Condition Index: Improved from -4.3 in August to -2.9 in September, suggesting a slightly better outlook on economic conditions.

Family Financial Situation Index: Rose from -17.0 to -16.5 points, showing a modest easing in pessimism about household finances.

Family Income Sentiment: Reached 0.1 index points in September — indicating positive income expectations for the first time since April 2025.

Rural Residents Feel Inflation Pressure More Strongly

In its Inflation Expectations Survey Report, the CBN observed that rural dwellers continue to feel the impact of inflation more acutely than those in urban areas.

“Rural respondents (73.9%) indicated a higher perception of elevated inflation compared to 72.4% of their urban counterparts,” the bank reported.

The apex bank’s surveys collectively highlight a mixed outlook — while business and consumer confidence are gradually improving, persistent financial pressures, taxation burdens, and infrastructure gaps continue to constrain growth and household well-being.