Businesses Upbeat On Growth, Hiring Despite Rising Costs — Survey

Businesses in Nigeria maintained an optimistic outlook on economic activity in March 2026, despite persistent concerns over high operating costs, insecurity and infrastructure constraints, according to the latest Business Expectations Survey (BES) released by the Central Bank of Nigeria (CBN).

The survey, which captured the sentiment of firms across industry, services and agriculture, showed that respondents anticipate an expansion in business activity in the near term, with many indicating plans to increase output and hire additional staff.

According to the survey, the overall confidence index remained in positive territory, reflecting sustained optimism about macroeconomic conditions and business performance in the months ahead.

Respondents identified high interest rates, elevated energy costs, multiple taxation, foreign exchange volatility and insecurity as the most pressing constraints to business operations during the review period. Poor power supply also remained a recurring concern, further increasing production costs for firms reliant on alternative energy sources.

Despite these headwinds, many businesses signaled intentions to expand operations, pointing to improving demand conditions and gradual adjustments to recent policy reforms.

“The positive outlook reflects a cautious optimism driven by expectations of improved macroeconomic stability and stronger demand,” analysts said, noting that firms appear to be adapting to prevailing conditions rather than waiting for a full resolution of structural challenges.

On employment, the survey indicated that firms expect to increase hiring in the coming months, a development that could provide some relief to the labour market if sustained. The projected rise in employment cuts across key sectors of the economy, suggesting that the anticipated growth is not isolated.

However, the survey report highlighted lingering concerns around cost pressures, with businesses expecting input prices to remain elevated. This, analysts warn, could sustain inflationary pressures in the near term, particularly if energy and logistics costs remain high.

The survey further showed that firms hold relatively stable expectations regarding the exchange rate, with many anticipating improved naira stability in the months ahead. Similarly, some respondents expressed hope that borrowing costs could moderate, although tight monetary conditions continue to weigh on access to credit.