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Businesses remain optimistic despite high taxes, insecurity

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Nigerian businesses maintained a positive outlook in June 2026 despite persistent macroeconomic challenges, with high taxes, interest rates and insecurity remaining their biggest operational concerns, according to the Central Bank of Nigeria (CBN).

The findings are contained in the June 2026 Business Expectations Survey (BES) released by the CBN’s Statistics Department under the Economic Policy Directorate.

The June 2026 BES was conducted between 8 and 12 June, covering 1,900 business enterprises across Nigeria.

The regulator said the survey methodology was enhanced from April 2026 by replacing the previous three-point weighted diffusion index with a five-point scale to provide a more nuanced assessment of business sentiment.

The report showed that the Business Confidence Index (BCI) stood at 7.2 points in June, indicating that businesses remained optimistic about the macroeconomy, although confidence moderated amid prevailing economic headwinds.

“The Business Confidence Index stood at 7.2 points in June 2026, signalling continued optimistic sentiment among formal businesses,” the report stated.

However, CBN said respondents identified high or multiple taxation (73.7 per cent) as the most significant business constraints, followed by insecurity (71.7 per cent) and high interest rates (67.0 per cent).

Other major business concerns cited by businesses include unfavorable political climate (63.5 percent), high bank charges (61.9 percent), poor infrastructure (58.5 percent), and financial constraints (58.2 percent).

“In June 2026, businesses identified High/Multiple Taxation (73.7 per cent), Insecurity (71.7 per cent), and High Interest Rates (67.0.per cent) as the top three constraints.

“These were followed by Unfavourable Political Climate (63.5 per cent) and High Bank Charges (61.9 per cent). Poor Infrastructure (58.5 per cent) and Financial Constraints (58.2 per cent) ranked lower but remain significant,” it stated.

According to CBN, respondents’ positive sentiment was largely driven by economic diversification (38.3 per cent) and expansionary fiscal policy (16.2 per cent).

It said cautious views were mainly attributed to energy-related challenges (23.4 per cent) and elevated geopolitical uncertainties (16.5 per cent).

Sectors, regions

The report said all major sectors expressed optimism about the macroeconomy and their own business operations during the review period.

Among the sectors, CBN said mining and quarrying recorded the highest Business Confidence Index at 42.9 points and also posted the highest capacity utilisation during the month.

The apex added that confidence remained positive across all sectors over the next six months, although the industry and services sectors recorded slower confidence levels in June compared with the previous month, 12.5 to 10.9 points.

Regionally, respondents in Northern Nigeria expressed stronger confidence than their Southern counterparts during the review month.

While all regions were optimistic about the next three and six months, the report noted that only the South-East and South-South expressed negative expectations for the following month, whereas the North-East recorded the strongest optimism over the medium-term outlook.

On business activity, the apex bank said firms expect improvements in the volume of business activity in July, September and December 2026, with the volume of business activity index recording the highest confidence level among the selected business indicators.

It added that although the Financial Condition Index and Credit Access Index remained positive, they were lower than other indicators. This suggested that financing conditions and access to credit continue to require attention.

Employment

The survey also showed mixed expectations for employment by the Nigerian businesses.

While the mining and quarrying sector recorded the strongest expansion outlook at 84.6 index points, hiring expectations across sectors remained cautious in the near term.

“Employment expectations in July 2026 were generally cautious across sectors, with the Mining and Quarrying sector exhibiting the least optimistic hiring outlook,” the report stated.

The survey further showed that businesses expect the naira to appreciate gradually against the US dollar across the review periods.

At the same time, respondents expect borrowing rates to remain elevated, with the relatively stable borrowing rate indices suggesting a moderate increase in financing costs over the near to medium term.

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Veritas Kapital CEO Nwakuche Joins Coal City University Governing Council

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BY NKECHI NAECHE-ESEZOBOR—The Managing Director/Chief Executive Officer of Veritas Kapital Assurance Plc, Dr. Adaobi Nwakuche, has  been appointed and inaugurated as a member of the Governing Council of Coal City University, Enugu, extending her leadership engagement into the higher education sector.

The Governing council, chaired by retired Lieutenant General Azubuike Ihejirika, former Chief of Army Staff, brings together professionals from diverse backgrounds to provide strategic direction and governance oversight for the institution.

Dr. Nwakuche’s appointment represents an opportunity to bring her enviable wealth is experience in Nigeria’s insurance industry to a higher education institution focused on academic development, institutional growth and the preparation of graduates for professional and entrepreneurial opportunities.

As MD/CEO of Veritas Kapital Assurance Plc, Dr. Nwakuche leads a Nigerian non-life insurance company in an industry where strategic decision-making, risk management, accountability and stakeholder engagement are essential to organisational performance.

Her participation in the university’s Governing Council extends this professional experience into a different institutional setting.

The Governing Council plays an important role in guiding the university’s strategic priorities, strengthening governance and supporting its long-term sustainability.

The participation of experienced professionals from the private sector can also foster cross-sector perspectives on institutional management, human capital development and organisational effectiveness.

Dr. Nwakuche’s appointment highlights the value of professional engagement beyond traditional industry boundaries and the role experienced leaders can play in supporting institutions across different sectors.

Veritas Kapital Assurance Plc congratulates Dr. Nwakuche on her inauguration and wishes her a successful and impactful tenure on the Governing Council of Coal City University.

The post Veritas Kapital CEO Nwakuche Joins Coal City University Governing Council appeared first on Business Today NG.

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Nigerian govt speaks on Fitch’s credit rating

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The Federal Government says Fitch Ratings’ decision to revise Nigeria’s credit rating outlook from Stable to Positive reflects progress in economic reforms, foreign exchange market adjustments and efforts to strengthen the country’s external position.

Fitch announced the revision on 9 October, retaining Nigeria’s long-term foreign-currency issuer default rating at ‘B’.

In a statement issued on Saturday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said Fitch cited increased foreign exchange reserves, easing inflation and improved economic prospects among the factors supporting the outlook revision.

According to the minister, Nigeria’s gross foreign exchange reserves rose to $54.9 billion as of 25 September 2026, from $32 billion in mid-April 2024.

He attributed the increase to more formalised foreign exchange transactions, portfolio inflows, higher exports and remittances.

Fitch also projected that Nigeria would record a current account surplus equivalent to 6.4 per cent of gross domestic product in 2026.

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Economic growth and inflation

The ratings agency projected that Nigeria’s real gross domestic product would grow by 4.3 per cent in 2026, compared with 4 per cent in 2025, with growth remaining above 4 per cent in 2027 and 2028.

Fitch expects non-oil activities to remain the main driver of economic expansion.

The projection comes as Nigeria’s economy recorded growth of 4.43 per cent year-on-year in the second quarter of 2026, according to the National Bureau of Statistics (NBS).

The figure was higher than the 3.89 per cent recorded in the first quarter of 2026 and the 4.23 per cent recorded in the corresponding quarter of 2025.

The World Bank’s October 2026 Nigeria Development Update projected average annual economic growth of 4.4 per cent between 2026 and 2028, identifying services and agriculture among the contributors to economic activity.

On inflation, Fitch projected an average rate of 15.4 per cent in 2026, less than half the level recorded in 2024.

The NBS reported that Nigeria’s headline inflation rate eased marginally to 15.39 per cent in August 2026, from 15.43 per cent in July.

The figures provide recent context for Fitch’s assessment of inflation, although the agency’s annual average forecast is different from the monthly inflation rate reported by the NBS.

Reserves, oil production and public debt

Fitch also noted developments in Nigeria’s oil sector, including crude oil production meeting the country’s OPEC target of 1.5 million barrels per day from May 2026.

Mr Oyedele said increased domestic refining was helping to reduce fuel imports and foreign exchange demand.

On public finances, Fitch expects Nigeria’s tax reforms to increase non-oil revenue relative to the size of the economy.

The agency projected that general government debt would average 32 per cent of GDP between 2026 and 2028, below the median of 56 per cent for countries with a ‘B’ rating.

Fitch also highlighted Nigeria’s domestic debt market and the banking sector recapitalisation exercise, noting that many banks had capital adequacy ratios above 20 per cent.

However, the agency identified persistent challenges, including inflation remaining above levels in peer countries, government revenue being low relative to the size of the economy, and interest payments accounting for a high proportion of government revenue.

The minister said the federal government would continue implementing reforms aimed at increasing revenue, improving spending efficiency, strengthening debt management and supporting non-oil economic growth.

Other rating developments

The Fitch decision follows other developments in Nigeria’s international credit assessments.

READ ALSO: FG to negotiate ₦1,350 petrol price ceiling as global oil shock drives pump prices

In May 2026, S&P Global Ratings upgraded Nigeria’s credit rating from ‘B-’ to ‘B’. In August, Moody’s revised its outlook on Nigeria to Positive while retaining its ‘B3’ rating.

Mr Oyedele noted that the government’s medium-term objective remained to improve Nigeria’s credit standing and work towards investment-grade status.

He said the administration would continue to focus on foreign exchange market reforms, tax revenue mobilisation, fiscal governance, more efficient public spending and growth in non-oil sectors.

The minister said its broader objective was to “translate economic reforms into jobs, food security, support for small businesses and improved living standards”.


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