Lagos, Nigeria – Nigerian businesses are demonstrating remarkable resilience as the Business Performance Index climbed for the sixth consecutive month to 113.6 points in June 2025, according to the latest NESG-Stanbic IBTC Business Confidence Monitor (BCM). The sustained expansion comes despite ongoing macroeconomic pressures, signaling corporate Nigeria’s growing adaptability.
Key Highlights from the Report
Record Optimism
-
Business Confidence Measure surged to 134.5 points (June 2025) – the highest this year
-
Manufacturing sector leads at 123.6 points, up from 114.4 in May
-
Non-manufacturing sector maintains expansion at 120.7 points, though momentum slows
Growth Drivers
Early benefits of government reforms
Modest oil output recovery
Improved supply chain stability in key manufacturing subsectors
Persistent Challenges
-
Access to finance (Top constraint)
-
Erratic power supply
-
FX volatility
-
High operational costs
-
Multiple taxation
Manufacturing: Bright Spot with Dark Clouds
The cement, textile, and plastic/rubber subsectors powered the manufacturing boom, but sector players warn of looming threats:
-
Soaring input costs (raw materials +48% YoY)
-
Diesel price surge (N1,320/liter in June)
-
Naira depreciation squeezing import-dependent factories
“We need rate cuts to survive,” pleaded the Manufacturers Association of Nigeria (MAN) after the CBN held rates at 27.5% in July.
Services Sector Slowdown
While still in expansion territory, non-manufacturing growth cooled for the second straight month:
Motor vehicle assembly – Sharp decline
Hospitality/Tourism – FX instability hits procurement
Logistics – Fuel costs erode margins
“Service firms are bullish on demand but bearish on costs,” noted a Stanbic IBTC analyst.
Methodology Shift
The BCM’s new scoring system (≥100 = expansion) aligns Nigeria with global benchmarks, enabling better cross-country comparisons.
Expert Warning
“This optimism is fragile,” said Dr. Nneka Okekearu of NESG. “Without fixing power, FX, and financing bottlenecks, we risk squandering this momentum.”
Business leaders now await:
-
CBN’s next rate decision (September 2025)
-
FG’s promised power sector reforms
-
AfCFTA implementation progress
