The Central Bank of Nigeria released its May 2025 Business Expectations Survey, indicating broad-based optimism among respondent firms about the macroeconomic outlook and their own operations. The overall Confidence Index stood at 18.7 index points and was projected to rise to 41.1 index points over the next six months, alongside positive expectations for business activity, employment and expansion. All broad sectors reported positive macroeconomic sentiment in the month, led by Agriculture at 23.2 index points, while the North-East recorded the highest regional optimism at 36.2 index points and the South-East the lowest at 2.3 index points, linked in the report to insecurity-related constraints. Respondents expected the NGN to USD exchange rate to appreciate across the review periods and anticipated higher borrowing rates, while identifying insecurity (74.5), high interest rates (73.9) and high taxes (73.4) as the top business constraints. Average capacity utilisation across sectors was 58.7% in May 2025, up from 56.9% in April 2025; the survey, conducted from May 5 to 9 with 1,900 firms and a 98.5% response rate, notes that results reflect respondents’ views rather than the Central Bank of Nigeria’s.
Central Bank of Nigeria 2025-06-02
Central Bank of Nigeria publishes May 2025 business expectations survey showing rising confidence and growth plans
The Central Bank of Nigeria's May 2025 Business Expectations Survey shows optimism among firms about the macroeconomic outlook, with a Confidence Index of 18.7 projected to rise to 41.1 in six months. Agriculture led sector sentiment at 23.2 index points, while regional optimism varied, with the North-East highest at 36.2 and the South-East lowest at 2.3 due to insecurity. Firms anticipate NGN appreciation against USD, higher borrowing rates, and cite insecurity, high interest rates, and taxes as key constraints.