Nigerian businesses are expected to increase employment in January 2026, driven by new expansion plans and a stable economic outlook for the year, according to a Business Expectation Survey (BES) report published by the Central Bank of Nigeria.
“In line with the expected business expansion plan, businesses anticipate hiring more workers in January 2026,” the monthly BES report for December, which surveyed 1,900 businesses across the country, stated.
“An analysis of the sectors showed that the agriculture sector had the highest prospect for expansion, while mining & quarrying had the highest prospect for employment in January 2026.”
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The development comes amid cost-cutting measures undertaken by businesses, including layoffs of workers and halting recruitment, over the last two years. This follows the government’s phase-out of fuel subsidies and relaxation of currency controls – twin policies that had inflated prices and increased operational costs.
That phase is gradually easing with inflation cooling for the eighth consecutive month to 14.45 percent and the naira firming up, ending last year with more than 7 percent in value compared to 41 percent depreciation in 2024.
The BES report expects the naira to remain broadly stable over the next six months, with the currency projected to appreciate from its current 26.6 index points to 39.7 index points.
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“Respondents expect the Naira to US Dollar exchange rate to steadily appreciate across the review periods, as indicated by the positive indices. Also, they anticipate a continuous positive outlook for the borrowing rate during the same periods.”
With the Nigerian economy stabilising and growth picking up, businesses are now confident, leading to more hiring in the reviewed month. According to the report, business confidence in the country stood at 37.5 index points in December and is expected to peak at 52.5 index points over the next six months.
Despite the improved outlook and rising confidence, respondents surveyed still identified areas that are hurting operations and sapping earnings, including insecurity and multiple taxation, among others.
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“Respondents identified insecurity (74.0), high/multiple taxes (69.9), insufficient power supply (67.9), high interest rate (67.5), and high bank charges (63.7) as the top five (5) business constraints in December 2025, highlighting factors that directly impact operational stability and profitability,” the report stated.
“At the bottom of the top ten constraints were Poor Infrastructure (57.3) and Unfavourable Political Climate (58.3). This suggests that business constraints were more focused on financial factors than political challenges in the review period.”