CBN Survey: High Interest Rates Now Top Business Concern in Nigeria
A new report from the Central Bank of Nigeria (CBN) reveals that businesses across Nigeria are increasingly burdened by soaring interest rates, which are now viewed as the top barrier to their operations, above longstanding challenges like insecurity and unreliable electricity.
The June 2025 Business Expectations Survey (BES), conducted by the apex bank’s Statistics Department from June 16–20, surveyed 1,900 businesses across key economic sectors. The findings show:
High interest rates received a constraint index score of 75.6,
Followed by insecurity (75.2), and
Insufficient power supply (74.3).
According to the report: “Respondents identified High interest rate (75.6), Insecurity (75.2) and Insufficient power supply (74.3) as the top three business constraints in June 2025, highlighting concerns around factors that directly impact operational stability and profitability.”
The survey reflects growing anxiety over rising borrowing costs as a result of the CBN’s tight monetary stance aimed at controlling inflation and supporting the naira. For many businesses—especially SMEs—the cost of credit has become a serious threat to profitability and liquidity.
Other major concerns cited by businesses include:
High bank charges (73.2)
Excessive taxation (68.9)
An unstable economic climate (68.7)
Ambiguous policies (67.4)
Interestingly, traditional issues like poor infrastructure (62.4) and political instability (62.5) ranked lower, implying that businesses are more preoccupied with economic and financial challenges than with politics.
Despite these headwinds, the Business Confidence Index (BCI) stood at 20.7 for June, with projections indicating a rise to 41.3 over the next six months, driven by optimism for improved market conditions.
Confidence, however, varies by region. The South-East recorded the lowest sentiment score at 4.4, attributed to the severe impact of high interest rates, while the North-East posted the highest optimism level at 37.1.
Many respondents also anticipate a strengthening of the naira in the coming months, even as they prepare for potentially higher lending rates.
The CBN’s Monetary Policy Committee (MPC) is currently in session.
While some analysts expect the Bank to hold the MPR steady at 27.5%, others are betting on a marginal cut to 27.25% or a tweak to the policy corridor to support cautious economic growth.
