Businesses’ confidence in macroeconomy rises to 7.9 index points — CBN

By Elizabeth Adegbesan

Business confidence in the macroeconomy increased markedly to 7.9 index points in May 2026, up from 3.9 index points in April 2026, according to the Central Bank of Nigeria’s latest Business Expectation Report. The rise comes despite ongoing challenges such as insecurity, multiple taxation, and high interest rates.

The report indicates that respondents’ sentiment about the economy reflects a mixed outlook. The improvement was largely driven by a perceived easing of governance and policy concerns (15.7 percent) and continued progress in economic diversification (15.6 percent).

“More cautious sentiments reflect ongoing energy‑related challenges (26.7 percent) and elevated geopolitical uncertainties (7.7 percent),” the CBN noted.

All sectors expressed optimism about the macroeconomy and expected an increase in business activity in the coming month, although employment expectations remained negative across sectors.

Consumers, however, were pessimistic about the macroeconomy, with Overall Consumer Sentiments in May 2026 at –16.8 index points, down from –15.1 index points in April 2026.

The most recent Consumer Expectation Survey showed the Economic Conditions index at –19.5 points in May 2026, signalling a pessimistic view of current economic conditions among households. The Family Financial Situation Index was –22.7 points, while Family Income Sentiments were –8.3 index points, indicating moderate pessimism about family income.

“Over the next six months, the Consumer Confidence Index is expected to be optimistic at 6.8 points, driven by a positive outlook on family income and economic conditions,” the CBN added.

In its latest Inflation Survey Report, the CBN reported an inflation expectations index of 44.8 points in May 2026, with Nigerians expecting moderation to 26.2 index points over the next six months. Among businesses, large firms reported the highest perception of high inflation (72.5 percent), while medium firms reported the lowest (64 percent).

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