Businesses across Nigeria entered February 2026 with renewed optimism over the country’s economic prospects, supported by improving demand conditions, easing cost pressures, and expectations of a more stable macroeconomic environment, according to the latest Business Expectations Survey (BES) released by the Central Bank of Nigeria (CBN).
The survey, which measures sentiment across key sectors of the economy, indicated that overall business confidence remained firmly positive, with firms signalling expansion plans in production, hiring, and commercial activity over the near term.
The CBN reported that respondents expressed optimism about rising business volumes, reflecting expectations of stronger output and increased economic activity in the months ahead. According to the report, this outlook is anchored on anticipated improvements in exchange rate stability, which businesses believe will ease planning uncertainties and support cost management.
“The BES revealed that employment outlook remains positive,” the apex bank stated, noting that many firms expect to expand their workforce as part of broader growth strategies. Anticipated increases in orders, production levels, and hiring were recorded across surveyed firms, suggesting a broad-based confidence in near-term expansion.
Sectoral responses showed that optimism was not isolated, with positive sentiment cutting across industry, services, and agriculture. In each segment, businesses projected higher activity levels and improved operational performance, reinforcing expectations of a more active real sector in the coming months.
The report further highlighted expectations of stronger demand conditions, which firms believe will translate into improved sales performance and profitability. “Respondents are optimistic that demand conditions will improve,” the survey noted, pointing to an anticipated recovery in consumption and business-to-business activity.
On pricing dynamics, the CBN observed that most firms expect either stability or moderation in input costs, a development that could ease pressure on margins and support profitability. This expectation is largely tied to projections of a more stable foreign exchange environment, which businesses identified as a key determinant of cost trends.
Despite the positive outlook, respondents flagged persistent structural and operational constraints that continue to limit business performance. These include high interest rates, insecurity, inadequate power supply, and infrastructural deficiencies, all of which remain significant headwinds to private sector expansion.
The apex bank noted that while these challenges persist, they have not significantly dampened overall sentiment. Instead, firms continue to signal confidence in improved macroeconomic conditions and expansion opportunities.
Overall, the CBN concluded that the survey reflects “a positive outlook for the macroeconomy,” with businesses positioning for growth, improved financial conditions, and stronger economic activity in the months ahead.
