Nigeria’s Business Performance Index (BPI) continued its upward trajectory for the fifth month in a row in 2025, reflecting steady—though slightly moderated—growth in the private sector.
The BPI for May 2025 reached +9.78, indicating a mildly positive level of economic activity. This figure, though lower than April’s +12.29, still marks improvement from the +6.58 recorded in March, signaling overall resilience in the business environment.
These insights come from the latest Business Confidence Monitor, jointly published by the Nigerian Economic Summit Group (NESG) and Stanbic IBTC. The May edition, titled “Enduring Infrastructure and Financial Conundrum Constraint Business Growth,” identifies both progress and persistent hurdles in Nigeria’s economic landscape.
Sector Performance: Manufacturing Holds Steady
Among the sectors tracked, non-manufacturing activities led the way with a robust performance of +22.19. Manufacturing followed closely at +14.43, showing resilience and steady momentum. Trade and services also posted positive results at +14.13 and +4.49 respectively.
Agriculture, however, remained a weak spot, with the index slipping to -1.77. This was largely attributed to worsening climate conditions such as shorter rainy seasons, excessive heat waves, and prolonged droughts, which have continued to limit productivity in the sector.
Compared to April, most sectors saw a slight deceleration, except manufacturing, which held its ground despite broader macroeconomic challenges.
Sub-Indices Reveal Mixed Outlook
A closer look at the sub-indices paints a mixed picture. Although general business conditions remained optimistic—with moderate gains in production, profits, cash flow, and employment—key indicators such as investment confidence and price stability registered notable declines.
Investment confidence dropped sharply to -25.61, while price levels slid to -18.15, indicating growing uncertainty and cost pressures that could impact long-term planning and expansion.
The cost of doing business also saw a noticeable decrease, falling to +38.54 in May from +51.79 in April—pointing to reduced operational expenses but also possible caution among firms.
Persistent Barriers Hampering Growth
Despite the positive momentum, several structural constraints continue to weigh on business performance. Chief among them are erratic power supply, high rental costs, limited access to affordable financing, and inconsistent foreign exchange availability. Businesses also reported increasing concerns about insecurity, which has disrupted operations in multiple regions.
The report underscored that these issues remain long-standing obstacles, with insecurity and financing constraints emerging as particularly critical threats to sustained growth.
As Nigeria looks to build on this positive trend, addressing these challenges will be crucial to unlocking broader economic gains and securing long-term business confidence.
