Insecurity, Poor Infrastructure Stifle Nigerian Businesses, CBN Survey Reveals
A recent survey conducted by the Central Bank of Nigeria (CBN) has shed new light on the persistent economic hurdles confronting Nigerian businesses, with insecurity and poor infrastructure emerging once again as key constraints to business growth and investor confidence.
The findings come amid growing national debate over the economic direction of the country under the administration of President Bola Ahmed Tinubu.
The CBN Business Expectations Survey, released as part of its quarterly economic outlook, draws on feedback from a broad range of private sector players across the country.
While the survey does not directly attribute blame to the Tinubu administration, it paints a sobering picture of the structural challenges still weighing heavily on the nation’s business environment.
According to the survey, many Nigerian business operators continue to cite unreliable electricity supply, poor road networks, and worsening security conditions—including kidnapping, banditry, and cargo theft—as top factors limiting productivity and profitability.
These concerns are not new, but their persistence more than a year into President Tinubu’s tenure has triggered growing anxiety in economic circles. Business leaders are calling for urgent, coordinated interventions to address what many see as chronic weaknesses undermining Nigeria’s growth prospects.
“Power outages remain the biggest single cost burden to our operations. Add to that the cost of diesel, risks on the road, and rising logistics delays, and it becomes difficult to remain competitive,” said one respondent in the manufacturing sector.
Survey Findings at a Glance
• Top Business Constraints:
• Insecurity (including rural banditry and urban violence)
• Poor transport and road infrastructure
• Unreliable power supply
• Foreign exchange volatility
• High cost of credit
• Business Confidence Index: The index showed moderate optimism, but with a clear cautionary tone due to ongoing macroeconomic uncertainty.
• Expectations: While businesses expect marginal improvements in the business environment in coming months, those expectations are heavily dependent on the government’s ability to implement key infrastructure and security reforms.
While the CBN did not single out any administration in its survey, the pattern is consistent with reports published during past governments. However, some observers argue that the expectation of quicker reforms under President Tinubu’s economic team may have led to sharper disappointment among private sector operators when tangible improvements did not materialize fast enough.
Analysts have noted that despite promising economic policies—such as the removal of fuel subsidies and FX market liberalization—the absence of parallel investment in infrastructure and law enforcement is stifling potential gains.
“Tinubu’s economic reforms were bold, but reforms on paper must translate into real-world improvements.
“If insecurity continues to disrupt supply chains and businesses can’t get reliable power, growth will be minimal,” said economic analyst Temitope Ajayi.
In recent months, the Tinubu administration has announced a number of initiatives aimed at tackling these issues, including a new national infrastructure roadmap, partnerships with state governments on security, and ongoing investment in rail and road transport.
However, critics argue that implementation remains slow, and the private sector is yet to feel the positive impact of these policy pronouncements.
The CBN’s latest Business Expectations Survey offers a clear warning: Without urgent and practical steps to improve infrastructure and security, Nigeria’s private sector—long considered the engine of growth—will continue to operate below capacity.
As the Tinubu administration moves into its second year, businesses are watching closely, hoping for more than promises. They want action.
