The Business Expectations Survey (BES) of the Central Bank of Nigeria (CBN) for December 2025 has shown that borrowing rates in Nigeria are projected to ease gradually over the next six months.
The easing is projected to be supported by expectations of a stronger naira against the United States dollar.
The report which captures the views of business leaders across key sectors of the Nigerian economy, reflects growing optimism around exchange rate stability and improving credit conditions in the near to medium term.
According to the report, as confidence in the naira improves, businesses are also anticipating a gradual reduction in borrowing costs, although broader structural challenges continue to weigh on overall economic performance.
The survey also showed a steady improvement in expectations for the naira’s performance against the US dollar over the review periods.
The exchange rate expectation index stood at 26.6 for the current month, rose to 28.8 in the next month, increased further to 36.4 in the next three months, and climbed to 39.7 in the next six months, indicating rising confidence in currency stability.
Similarly, expectations around borrowing rates point to a gradual easing of credit conditions.
The borrowing rate expectation index was 15.6 in the current month, declining to 14.7 in the next month, 11.5 in the next three months, and 9.9 in the next six months.
“Respondents expect the naira to US dollar exchange rate to steadily appreciate across review month periods, as indicated by positive indices. Also, they anticipate continuous positive outlook for the borrowing rate during the same periods,” the report showed.
However, the survey also highlights persistent challenges in the real sector. Average capacity utilisation across sectors stood at 49.8 per cent in December 2025, suggesting that many businesses are still operating below optimal levels despite improving macroeconomic expectations.
The CBN noted that structural constraints such as infrastructure deficits, high taxation, and limited access to affordable credit continue to cap the pace at which improved expectations can translate into actual economic expansion.
