Nigeria’s business environment showed slight improvement in August 2025, even as longstanding structural hurdles continue to constrain growth, according to the NESG-Stanbic IBTC Business Confidence Monitor (BCM) report titled “Mixed Signals: Strong Sectoral Growth Versus Structural Hurdles.”
The report shows the Current Business Performance Index rising to 107.3 points, up 1.9 points from July, signaling modest optimism among firms. The growth was largely driven by technology, finance, manufacturing, energy, and logistics, underpinned by targeted investments and ongoing reforms.
Sectoral Performance Highlights
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Trade led the rebound, climbing to 114.1 points, bouncing back from July’s decline.
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Manufacturing and non-manufacturing sectors recorded 106.2 and 116.2 points, respectively, while services improved to 103.7 points.
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Agriculture, however, contracted to 95.6 points, affected by climate variability, delayed rainfall, shorter wet seasons, insecurity, and planting disruptions.
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Sub-sector breakdown: Crop Production and Forestry slipped, while Livestock, Fishing, and Agro-Allied saw slight gains.
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Key Challenges Facing Businesses
Despite sectoral growth, businesses reported rising costs, limited financing, unreliable electricity, high rentals, and security concerns. Input costs in agriculture, particularly for poultry feed and fertilizers, further strained operations, eroding margins and hindering reinvestment. Price volatility and weak consumer purchasing power added to uncertainties, causing some agribusinesses to stagnate or close.
Policy Imperatives
The report underscores the urgent need for stabilizing policies, improved infrastructure, stronger security, and easier access to finance to sustain growth. Strengthening these areas is critical to reinforcing resilience and ensuring sectors can meaningfully contribute to national economic development.
