Firms' faith in the overall economy climbs to 7.9 on the index, according to the Central Bank.

Business confidence in the macro economy experienced a notable surge, climbing to 7.9 index points in May 2026, a significant increase from the 3.9 index points recorded in April 2026, despite ongoing challenges posed by insecurity, multiple taxation, and high interest rates.

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The Central Bank of Nigeria's Business Expectation Report revealed that this improvement in sentiment was primarily driven by a perceived easing of governance and policy-related concerns, which accounted for 15.7 percent of the increase, as well as progress in economic diversification, which contributed 15.6 percent.

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However, cautious sentiments persisted, largely due to ongoing energy-related challenges, which affected 26.7 percent of respondents, and elevated geopolitical uncertainties, which impacted 7.7 percent of respondents, according to the Central Bank of Nigeria.

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Despite these challenges, all sectors expressed optimism regarding the macroeconomy and anticipated an increase in business activity in the next month, although employment expectations remained negative across sectors.

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In contrast, consumer sentiment was pessimistic, with the Overall Consumer Sentiments standing at -16.8 index points in May 2026, a decline from the -15.1 index points recorded in April 2026.

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The Central Bank of Nigeria's Consumer Expectation Survey report revealed that the Economic Conditions index stood at -19.5 points in May 2026, indicating a pessimistic outlook on current economic conditions among households.

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Furthermore, the Family Financial Situation Index stood at -22.7 points in May 2026, reflecting respondents' pessimistic views about their financial situation.

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The Family Income Sentiments recorded -8.3 index points in May 2026, indicating moderate pessimism regarding family income.

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However, the Consumer Confidence Index was optimistic, standing at 6.8 points over the next six months, driven by a positive outlook on family income and economic conditions, according to the Central Bank of Nigeria.

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In its Inflation Survey Report, the Central Bank of Nigeria noted that the inflation expectations index stood at 44.8 points in May 2026, with Nigerians expecting a moderation to 26.2 index points over the next six months.

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Among businesses, large businesses reported the highest perception of high inflation, at 72.5 percent, while medium businesses reported the lowest, at 64 percent.