Nigerian businesses are preparing to ramp up hiring and expansion in the coming months, according to the May 2025 Business Expectations Survey (BES) released by the Central Bank of Nigeria (CBN).
Despite significant headwinds such as insecurity and high interest rates, firms across key sectors expressed strong intentions to increase workforce and operational capacity, marking a cautiously optimistic outlook for the economy.
The report conducted from May 5 to 9, 2025, with a sample size of 1,900 across Nigeria, disclosed that the Construction sector had the highest prospect of employment at 22.2 percent, while the Mining and Quarrying sector had the highest prospect of expansion at 73.3 percent in June 2025.
Other sectors to see a rise in employment include Manufacturing (14.9), Market services (13.4), Non-Market Services (14.6), and Agriculture (17.5) in June.
However, this optimism is affected by structural challenges. Businesses identified insecurity (74.5), high interest rates (73.9), and high taxes (73.4) as the top three operational constraints. These issues pose risks to employment gains, as firms may face difficulties securing affordable credit or operating in safe environments.
Despite expansion intentions, the rising cost of borrowing, which firms expect to increase in the coming months, may discourage full-scale execution of growth plans. Coupled with persistent financial problems and policy uncertainties, the employment momentum could be easily disrupted without government intervention.
The report also highlighted geographic disparities in business outlook. While regions like the North-East (36.2 index points) and North-West (20.0) expressed strong confidence in the macroeconomy, the South-East posted a troublingly low 2.3 points, primarily due to insecurity. These regional variations could lead to uneven employment and investment opportunities across the country.
Similarly, while all sectors expect growth, their capacity to hire and expand varies. “Sectors like mining and energy, though capital-heavy, signaled more aggressive expansion than employment, while construction, a traditionally labor-intensive industry, focuses on job creation,” it said.
The BES report also disclosed that firms expect the naira to appreciate in the coming months, a rare reversal from recent trends, which could reduce input costs and boost investor sentiment.
The report reveals that 23.9 percent of respondents expect the naira to appreciate against the US dollar within the next six months, giving relief to businesses that have endured the steep devaluation of the currency after the unification of the exchange rate in 2023.
“Only 23.9 percent of respondents expect the Naira to US dollar exchange rate to appreciate in the next six months, down from the 26.3 percent reported last month, and 8.2 percent expect the rise over the next month,” the survey showed.
