James Emejo in Abuja
Nigeria’s business environment remained in expansion territory in June 2026. Still, the pace of growth slowed considerably as businesses grappled with high operating costs, limited access to credit, poor infrastructure, and persistent insecurity.
According to Nairametrics, the latest Business Confidence Monitor (BCM) released by the Nigerian Economic Summit Group (NESG) showed that the Current Business Performance Index held steady at 104.6 points in June, unchanged from May. However, the figure was significantly lower than the 113.6 points recorded in June 2025, indicating that although business growth continued, the momentum weakened over the past year.
The report revealed a mixed performance across sectors, with manufacturing, agriculture, non-manufacturing and trade remaining in expansion, while the services sector slipped into contraction.
According to the NESG, key business indicators, including production, customer demand, operating profit, financial performance, supply orders, cash flow, employment and access to credit, all remained positive during the month. However, investment, exports and inventory accumulation continued to weaken, reflecting lingering caution among businesses.
“The NESG Business Confidence Monitor Current Business Performance Index remained unchanged at 104.6 points relative to May 2026, but this represents a marked decline from the 113.6 points recorded in June 2025,” the report stated.
Despite the resilience recorded across most sectors, the group said businesses continued to contend with multiple operational challenges, including high borrowing costs, inadequate electricity supply, rising rental expenses, insecurity and weak infrastructure. However, the overall cost of doing business moderated slightly during the period.
Agriculture rebounded into expansion as its Business Confidence Index rose to 103.9 points from 97.5 points in May, supported by early harvests and favourable rainfall, which boosted crop production. However, livestock and forestry activities remained subdued.
Manufacturing also remained in positive territory, with an index of 106.4 points, although this was a decline from 114.1 points recorded in May and 123.6 points in June last year. The report attributed the slowdown to weaker performance in food, beverages, and tobacco; cement; plastics and rubber products; and basic metals, despite improved activity in the textile, apparel, and footwear segment.
The non-manufacturing sector returned to expansion with an index reading of 106.8 points, buoyed by stronger activities in construction and crude petroleum production. However, oil and gas support services remained in contraction.
The services sector, however, recorded a decline, posting an index of 98.5 points, as weaker performance in financial services, telecommunications, real estate, and broadcasting offset gains elsewhere.
Similarly, the trade sector maintained modest growth with an index of 102.0 points, although wholesale trade weakened while retail activities contracted during the month.
The NESG said that elevated financing costs, unreliable electricity supply, infrastructure deficits, insecurity, and regulatory uncertainties continued to constrain investment, erode profit margins, and limit employment growth across the economy.
Despite the prevailing challenges, businesses expressed stronger optimism about the near-term outlook.
The Future Business Expectation Index rose to 128.4 points in June from 127.0 points in May, signalling improved confidence over business conditions in the next one to three months.
The group attributed the improved sentiment partly to easing geopolitical tensions in the Middle East, which helped moderate global crude oil prices during the period.
The report comes against the backdrop of Nigeria’s improving macroeconomic performance. The country’s economy expanded by 3.89 per cent year-on-year in the first quarter of 2026, while the trade sector accounted for 17.89 per cent of the nation’s Gross Domestic Product.
