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High Taxes, Bank Charges Top Business Constraints In September — CBN

The apex bank said businesses still showed hope, as the Confidence Index stood at 31.5 index points in the month under review.

By Channels Television
Updated October 16, 2025
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Shoe seller Bidemi Bello attends a costumer while selling sandals at her stall in the Balogun Market in Lagos on December 18, 2023. – Christmas and year-end celebrations are marred by the economic crisis and soaring prices in Nigeria. Poverty in the most populous country in Africa has risen in 2023, affecting 104 million people, compared to 79 million five years earlier, according to the World Bank. The prices of food items and basic goods have skyrocketed following an increasing inflation rate and devaluation of the Naira, making daily life increasingly difficult for millions of Nigerians. (Photo by Benson Ibeabuchi / AFP)

 

A Business Expectations Survey Report released by the Central Bank of Nigeria (CBN) has shown that top on the list of challenges of Nigerian businesses in September 2025 were multiple high taxes, bank charges, and inadequate infrastructure.

According to the survey, respondents identified High Bank Charges (70.8), High/Multiple Taxes (70.8), and Poor Infrastructure (70.7) as the three most pressing challenges hindering business operations across the country.

However, the report said businesses still showed hope, as the Confidence Index stood at 31.5 index points in September 2025.

While businesses in the North-East expressed the highest level of optimism at 48.7 index points, those in the South-East recorded the lowest at 7.3 index points.

The apex bank said low optimism in the South-East may be linked to a higher prevalence of business constraints, including poor infrastructure and multiple taxation at state and local levels.

Other notable constraints identified by businesses include unfavourable economic policies (64.9), unpredictable exchange rate movements (62.3), limited access to credit (58.5), and inflationary pressures (55.6).

 

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At the lower end of the list, the report noted, were competition (40.4) and insufficient power supply (37.8), which, while still significant, were less frequently cited compared to financial and fiscal burdens.

The survey also projected optimism to peak at 51.8 index points over the next six months, signaling cautious confidence among respondents about future economic conditions.

Nigeria’s economy continued its upward momentum in September 2025, PMI rising to 54.0 points, according to CBN’s latest Purchasing Managers’ Index (PMI).

The CBN noted that the index increased from 51.7 points in August, marking the tenth consecutive month of expansion.

The report further indicated that the Composite PMI growth, driven by strong performances across the Industry, Services, and Agriculture sectors, reflected a continued improvement in overall economic activity and business confidence nationwide.

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