Running a business in Nigeria continues to require careful planning as entrepreneurs deal with rising operating costs, security concerns and expensive access to finance.
The latest Business Expectations Survey by the Central Bank of Nigeria (CBN) has highlighted three major issues businesses continue to struggle with: high or multiple taxation, insecurity and high interest rates.
The September 2026 survey shows that although Nigerian businesses are still seeing opportunities for growth, several challenges continue to put pressure on their operations and profitability.
According to the survey, high or multiple taxation recorded 67.1 points, making it the biggest business constraint during the period. Insecurity followed with 66.2 points, while high interest rates recorded 64.3 points.
Why Taxes Remain a Major Concern
Taxes are an important part of running a formal business, but the number and cost of taxes, levies and related charges can become a serious burden, particularly for small businesses.
For entrepreneurs operating with limited profit margins, additional financial obligations can reduce the amount of money available for purchasing goods, paying workers, improving equipment or expanding the business.
The concern over taxation also shows why business owners need to understand their tax responsibilities and maintain proper financial records.
Rather than ignoring tax obligations, entrepreneurs can benefit from keeping accurate records of income, expenses and payments while seeking professional guidance where necessary.
Insecurity Continues to Affect Business Activities
Insecurity is another major challenge identified by businesses.
A business does not operate in isolation. When security concerns affect a particular area, they can influence the movement of customers, workers and goods.
Transporters may also face additional risks and costs, while businesses may have to spend more on security arrangements.
For businesses that depend heavily on physical shops, transportation, agriculture or regular movement of goods, insecurity can have a direct effect on daily operations.
The CBN survey ranked insecurity second among the major constraints reported by businesses in September.
High Interest Rates Make Borrowing More Expensive
Access to affordable finance remains important for businesses that want to expand.
Many entrepreneurs rely on loans or other forms of credit to purchase equipment, increase stock, manage cash-flow problems or open new branches.
However, high interest rates increase the cost of borrowing. A business owner who takes a loan at a high rate may have to devote a larger portion of future income to repayment.
This can discourage some businesses from borrowing and may cause others to postpone expansion plans.
The CBN reported that businesses continued to expect borrowing rates to remain elevated, although there were expectations of some moderation over the longer term.
Other Problems Businesses Are Facing
Taxation, insecurity and interest rates are not the only challenges highlighted by the survey.
Other concerns included an unfavourable political climate, high bank charges, competition, unclear economic laws, an unfavourable economic environment, financial constraints and poor infrastructure.
These challenges can also affect one another.
For example, a business may face high operating expenses while simultaneously dealing with expensive banking services, transportation difficulties and limited access to affordable credit.
Businesses Are Still Showing Some Confidence
Despite the challenges, the CBN survey does not suggest that Nigerian businesses have completely lost confidence in the economy.
The Business Confidence Index stood at 13.4 points in September 2026, indicating that businesses maintained a positive outlook.
The CBN attributed positive business sentiment mainly to factors including increased demand, economic diversification and access to finance.
This suggests that Nigerian entrepreneurs are facing serious difficulties but are still identifying opportunities within the economy.
What Business Owners Can Do
While entrepreneurs cannot control issues such as national interest rates or insecurity, they can take steps to make their businesses more financially prepared.
Business owners should consider:
Keeping proper records of income and expenses.
Separating personal money from business funds.
Understanding the taxes and levies applicable to their businesses.
Comparing financing options before taking loans.
Avoiding unnecessary borrowing.
Reviewing operating expenses regularly.
Building an emergency fund when possible.
Monitoring changes in government policies that may affect their businesses.
Small businesses in particular need to pay close attention to cash flow because unexpected expenses can quickly affect their ability to operate.
What the CBN Findings Mean
The latest survey provides a picture of the pressures currently facing Nigerian businesses.
High taxation increases the financial burden on businesses, insecurity can disrupt operations and movement, while high interest rates make access to borrowed money more expensive.
At the same time, the positive Business Confidence Index shows that many businesses continue to believe there are opportunities within the Nigerian economy.
For entrepreneurs, the message is clear: surviving in the current business environment requires more than simply increasing sales. Careful financial management, proper planning and an understanding of the wider economic environment are becoming increasingly important.
As Nigeria continues to implement economic and tax reforms, businesses will be watching closely to see whether these measures eventually translate into lower operating costs, easier access to finance and a more predictable environment for entrepreneurs.
Julian Daily Gist will continue to bring readers practical explanations of economic developments and what they mean for everyday Nigerians and business owners.
