Essential Public Policy Considerations for Strategic Business Planning in 2026
- High Interest Rates & Tight Monetary Policy
- According to the Central Bank of Nigeria (CBN) Business Expectations Survey, about 75% of Nigerian businesses cited high interest rates as their primary constraint in January 2025. Nairametrics+2Punch+2
- The high cost of borrowing limits business expansion, investment and working‐capital access. Punch+1
- From a policy angle, this ties into Nigeria’s inflation fight and currency pressures.
Implications for business:
- Capital‐intensive firms (manufacturing, infrastructure, agri‐processing) face lower margins because of expensive finance.
- SMEs are particularly vulnerable and may defer growth or go informal.
Key players in the private sector investments environment should consider financing risk, cost‐of‐doing‐business and identify areas of risk mitigation when planning for investments in Nigeria next year.
- Inflation & FX (Foreign Exchange) Volatility
- Inflation was cited by ~49% of businesses in Nigeria as their top challenge for 2025. Intelpoint
- Exchange‐rate pressure (naira volatility) compounds this, especially for import‐dependent inputs or firms with FX obligations. Intelpoint+1
- The International Monetary Fund (IMF) noted that Nigeria has recently taken steps to remove fuel subsidies and improve the FX market as part of reforms. IMF
Implications for business:
- Businesses needing imported raw materials/components face unpredictable cost structures.
- Pricing strategies may need frequent adjustment; margin squeeze risks increase.
CMC Verdict
For Public Affairs Experts, it is critical they advise their firms to be transparent with stakeholders about cost pressures, supply‐chain risk, and devise best approach at mitigating risks and work out best approaches at staying afloat.
- Infrastructure Deficits & Power Supply Constraints
- Unreliable power supply remains a major obstacle. One source estimated power deficits costing business ~$29 billion annually. iTelemedia
- The manufacturing sector continues to highlight high energy and logistics costs as key constraints. The Nigerian Inquirer+1
Implications for business:
- Firms often have to invest in alternative power (generators, solar) which increases operational cost.
- Location decisions (manufacturing plants, processing centres) are more complex.
CMC Verdict
We advise Public Affairs and Government Relations Executives to engage with government to emphasise infrastructure needs, advocate for partnerships (public‐private) or highlight strategies your organisation can put in place to mitigate these risks.
- Tax & Regulatory Reform Pressure
- The government is working on tax reform bills aimed at broadening the tax base and improving fiscal governance. theradar.ng+1
- Business stakeholders have noted multiple taxes, weak incentives, and regulatory burdens as growth constraints in Nigeria. Business Post Nigeria+1
Implications for business:
- Heightened compliance burden (especially for digital, tech and SME segments).
- Need for tax strategy and scenario‐planning for potential new taxes/levies.
CMC Verdict
Framing tax reform as both a challenge and opportunity for business climate improvement should be a subject of discourse with government by public affairs executives on behalf of their organisations.
- Agriculture & Value-Addition / Raw Materials Policy
- In the agriculture sector, stakeholders warn that policy gaps and weak investment incentives threaten Nigeria’s growth potential. Vanguard News
- The drive for value‐addition (rather than export of raw materials) is becoming more pronounced in government policy (for example raw input bans, export restrictions) in some agro‐commodities.
Implications for business:
- Firms in agro‐processing must factor policy changes around raw‐material sourcing, export restrictions, import duties.
- Investors may shift toward downstream operations (value‐addition) rather than purely raw‐material export.
CMC Verdict
Key players in the sector should engage policy makers with their positioning on the policy and emphasize that they are aligning with “made in Nigeria / value‐added” agendas, and how policy changes create competitive opportunity; however government needs to look at their pain points in order for their businesses to thrive.
- Public-Private Partnership (PPP) & Infrastructure Approvals
- A recent policy shift: the federal government approved decentralisation of PPP approval processes, ministries can now approve up to ~₦20 billion projects, agencies up to ~₦10 billion, bypassing previously necessary FEC approval. Mondaq
- This opens up faster private‐sector participation in infrastructure delivery.
Implications for business:
- New opportunities for firms in construction, engineering, logistics, infrastructure services to engage with government projects.
- But it also means firms must ensure compliance, due diligence, risk assessment (because oversight burdens may increase).
CMC Verdict
For PR: positioning firms as credible PPP partners, emphasising capacity, compliance, track record may be a key message.
- Security & Business Environment
- Apart from pure policy, the business environment is impacted by insecurity: 74.3% of businesses in Jan 2025 survey cited insecurity as a constraint. Nairametrics+1
- While not strictly “policy,” government security policy and enforcement (or lack thereof) strongly affect business operations, especially in agriculture, logistics, manufacturing.
CMC Verdict
Risk mitigation (insurance, supply chain resilience) needs to be factored.
Public Affairs and public Relations Advisors need to build communication around how their firms are meeting security challenges (employee safety, supply chain continuity) for policy makers to consider in tax policy reviews.
In summary
For experts in Public Affairs/ PR / communications consulting in Nigeria, these policy issues are fundamental context when advising clients or designing business strategies for next year:
- Financing & cost of capital constraints
- Inflation / FX risk
- Infrastructure & energy bottlenecks
- Tax/regulatory reform landscape
- Agriculture/value‐addition policy shifts
- PPP & infrastructure engagement opportunities
- Security environment as a business operational risk