Experts have said that without meaningful improvements in se­curity, infrastructure and policy coordination, economic reforms alone may not be sufficient to unlock broad-based private sec­tor growth.
They stressed that insecurity poses a particularly damaging threat because it affects both domestic and foreign investor perceptions of risk.
Foreign investors, they not­ed, often place security consid­erations above macroeconomic indicators when making in­vestment decisions, especially in emerging markets.
This followed the Central Bank of Nigeria’s (CBN) latest Business Expecta­tions Survey which showed Nigeria’s fragile business environment has come under renewed strain as insecurity emerged as the single biggest operational chal­lenge confronting firms across the country, overshadowing tax­ation, high borrowing costs and exchange rate volatility.
The April 2026 survey, covering about 1,900 businesses nationwide, revealed that in­security scored 74.1 points on the index of operational con­straints, making it the high­est-rated challenge affecting business operations and invest­ment decisions in the country.
The development signals a major shift in corporate con­cerns, especially in an economy where inflation, forex instability and policy uncertainty have his­torically dominated boardroom discussions.
Analysts said the rise of in­security above macroeconomic variables reflects growing anx­iety among investors over the sustainability of operations, movement of goods, protection of assets and the overall cost of doing business.
The report also highlighted high taxation and elevated in­terest rates as major concerns for businesses, underlining the severe cost pressures facing firms amid lingering economic reforms, energy price adjust­ments and weak consumer purchasing power.
Despite these headwinds, the survey showed that businesses retained a modest level of opti­mism about the economy, with the overall confidence index standing at 3.9 points in April 2026.
However, the figure reflected cautious optimism rather than strong business confidence, as many firms continue to grapple with rising operational expens­es and declining profit margins.
Economic analysts said the survey paints a picture of an economy struggling to balance reform-driven adjustments with worsening structural deficien­cies.
According to the report, the emergence of insecurity as the leading operational challenge is not merely a reflection of rising crime statistics but an indication of weakening con­fidence in Nigeria’s operating environment.
The survey findings come at a time when businesses are also contending with tighter financial conditions following sustained monetary tightening by the Central Bank of Nigeria aimed at controlling inflation and stabilising the naira.