High Taxation Impacts Business Confidence in Nigeria

Months into the implementation of new tax laws, businesses have reported high and multiple taxation as a significant constraint, as indicated by the August Business Expectations Survey released by the Central Bank of Nigeria (CBN). The Business Confidence Index (BCI) rose from 5.7 to 14.8 in August 2026.

In the survey, businesses ranked high and multiple taxation as the top constraint with 67.8 index points, followed closely by insecurity at 66.9 index points and high interest rates at 63.5 index points. Other notable constraints included high bank charges at 61.1 index points, competition at 59.5 index points, unclear Economic Laws at 57.7 index points, and an unfavorable economic climate also at 57.7 index points.

The survey indicated that unfavourable political climate and poor infrastructure were at the bottom of the top 10 constraints, reflecting lower but still significant challenges for businesses.