Nigeria records improved business performance in the face of structural challenges
In June 2025, business performance in Nigeria experienced another positive trend, marking six consecutive months of growth, as reported by the NESG-Stanbic IBTC Business Confidence Index Monitor (BCM).
The Business Performance Index for June 2025 was recorded at 113.6 points, reflecting a 3.8-point increase from the 109.8 points noted in May 2025. Sector-wise, significant growth was observed in the manufacturing sector, which achieved 123.6 points; the non-manufacturing sector recorded 120.7 points, while the trade index reached 121.0 points in June 2025. The agricultural and services sectors also saw slight growth, attaining 108.9 and 106.3 points, respectively.
However, the non-manufacturing sector experienced a minor decline to 120.7 points in June, down from 122.2 points in May 2025. This decline may be linked to limited credit availability, increased inventories due to weak demand, and unfavorable exchange rates, with imported inflation contributing to higher production costs.
The overall positive outlook for business performance is fueled by expectations of an improved business environment, stronger demand conditions, and enhanced profitability. Despite this positive trend, structural challenges continue to impede broader business growth.
To sustain these improvements, the government must ensure a more stable exchange rate regime to mitigate uncertainties and reduce input costs. Additionally, targeted measures are essential to stimulate demand and improve financing conditions, especially for small and medium-sized enterprises (SMEs).
