Despite Rising Energy, Input Costs, Businesses Plan Output Increase, Hiring – CBN Survey

Businesses in Nigeria expressed strong optimism about the economy’s outlook in February 2026, driven by improving demand conditions, easing cost pressures, and expectations of a more stable macroeconomic environment, according to the latest Business Expectations Survey (BES) released by the Central Bank of Nigeria (CBN).

The BES, which captures the sentiments of firms across major sectors, showed that overall confidence remained positive, with firms indicating expansion plans across key sectors of the economy in the months ahead.

According to the report, “respondents expressed optimism on the volume of business activities,” reflecting expectations of increased production and stronger commercial activity in the near term. The apex bank noted that confidence was underpinned by expectations of improved exchange rate conditions, which businesses said would support planning and reduce uncertainties around costs.

The BES revealed that firms anticipate growth in orders, production and employment, with many respondents projecting an increase in their workforce in the coming months. The report stated that “employment outlook remains positive,” as businesses position for expansion.

Sectoral analysis showed that optimism cut across industry, services, and agriculture, with respondents in these sectors expecting higher business activity.

The report further revealed that businesses expect demand conditions to improve, which is expected to translate into increased sales and profitability. “Respondents are optimistic that demand conditions will improve,” the survey noted.

On pricing, the CBN said most firms expect stability or moderation in input costs, which could ease pressure on operating margins. According to the report, this is linked to expectations of a more stable exchange rate environment.

However, despite the positive outlook, businesses highlighted persistent operational constraints. Key challenges identified in the survey include high interest rates, insecurity, insufficient power supply and infrastructural bottlenecks.

The report noted that these factors continue to weigh on business performance, even as firms maintain a positive outlook for growth. Overall, the CBN said the findings reflect “a positive outlook for the macroeconomy,” with businesses expressing confidence in expansion, improved financial conditions and stronger economic activity in the months ahead.