KEY POINTS

• Business confidence in the macroeconomy rose to 7.9 index points in May, up from 3.9 in April.
• Insecurity, multiple taxation and high interest rates remained major operational challenges.
• Consumer sentiment stayed negative at -16.8 index points, though households are upbeat about the next six months.

Business confidence in Nigeria’s macroeconomy rose sharply to 7.9 index points in May 2026 from 3.9 points in April, the Central Bank of Nigeria has said, even as insecurity, multiple taxation and high interest rates continued to challenge operations. The figures appeared in the bank’s latest Business Expectation Report, which described overall sentiment as mixed.

Firms grow more upbeat

According to the CBN, easing governance and policy-related concerns largely drove the improvement, at 15.7 percent, alongside continued progress in economic diversification, at 15.6 percent. However, the bank said more cautious sentiment reflected ongoing energy-related challenges, at 26.7 percent, and elevated geopolitical uncertainties, at 7.7 percent.

Moreover, all sectors expressed optimism about the macroeconomy and expected business activity to rise in the following month. Still, employment expectations remained negative across sectors, which signals that firms anticipate growth without immediately adding jobs. On prices, the bank noted that large businesses reported the highest perception of high inflation, at 72.5 percent, while medium-sized firms reported the lowest, at 64 percent.

Consumers stay cautious

In contrast, households held a gloomier view. According to the bank’s Consumer Expectation Survey, overall consumer sentiment stood at -16.8 index points in May, down from -15.1 points in April. Furthermore, the Economic Conditions index recorded -19.5 points, which pointed to a pessimistic outlook on current conditions.

Similarly, the Family Financial Situation Index stood at -22.7 points, while the Family Income index recorded -8.3 points, indicating moderate pessimism about earnings. Nevertheless, consumers turned more hopeful about the months ahead, as the six-month Consumer Confidence Index reached an optimistic 6.8 points, driven by a positive outlook on family income and economic conditions.

On inflation, the bank’s latest survey put the inflation expectations index at 44.8 points in May. However, it added that Nigerians expect price pressures to moderate to 26.2 index points over the next six months. Ultimately, the reports paint a two-speed picture, because businesses have grown more confident about recovery while many households still feel the squeeze, even as both groups look for relief later in the year.