High, Multiple Tax Constrains Businesses as Confidence Rises

Months into the implementation of the new tax laws, businesses have identified high and multiple taxation as one of their top constraints, even as Business Confidence Index (BCI) strengthened from 5.7 to 14.8 in August 2026.

According to the August Business Expectations Survey report released by the Central Bank of Nigeria (CBN), businesses surveyed listed high and multiple taxation alongside insecurity and high interest rate with 67.8, 66.9 and 63.5 index points respectively, as the top three business constraints.

They also listed high bank charges with 61.1 index points followed by competition with 59.5 index points as well as unclear Economic Laws at 57.7 index points) and unfavourable economic climate with 57.7index points) as constraints to business.

At the bottom of the top 10 constraints were unfavourable political climate and poor infrastructure reflecting relatively lower, though still considerable challenges. Meanwhile, all sectors indicated optimism about the macroeconomy.

The electricity, gas and water supply sector recorded the highest Business Confidence Index (50.0 points), while the Construction Sector recorded the highest prospects for expansion in September 2026.

The Mining & Quarrying sector recorded the highest capacity utilization in the review month55t Volume of business activity is expected to improve in September and November 2026, with further improvement anticipated in February 2027.

The report noted that employment expectations for September 2026 were generally tempered across sectors, with the electricity, gas and water supply sector recording a neutral position in hiring.