A recent survey conducted by the Central Bank of Nigeria (CBN) revealed that Nigerian firms are most worried about three key challenges: multiple layers of taxation, rising insecurity, and high interest rates. The findings were published after the bank released its latest business sentiment index, which, despite highlighting a generally positive outlook, underscored the persistent difficulties faced by companies across the country.
According to the survey, firms cited the complexity of the tax regime as a major obstacle to growth. The CBN noted that the multiplicity of taxes and the lack of clarity in the tax code continue to hamper investment decisions and operational efficiency.
Insecurity was identified as the second top concern, with businesses reporting that security challenges—ranging from armed robbery to communal clashes—impede their ability to conduct trade safely and reliably. The survey highlighted that these security risks increase operational costs and deter foreign investment.
High interest rates also topped the list of worries, as firms struggle to secure affordable financing. The CBN pointed out that elevated borrowing costs limit the capacity of businesses to expand, invest in new technology, or improve productivity.
While the survey paints a picture of significant challenges, the overall sentiment among Nigerian firms remains cautiously optimistic. The CBN’s business sentiment index continues to show a positive trajectory, suggesting that companies are hopeful about future prospects despite the hurdles outlined in the study.
<small>Source: Punch Nigeria — read the original story there.</small>