Nigeria’s private sector delivered its most robust performance in five months this July, with businesses spanning all major sectors reporting broad-based expansion—even as they grappled with high borrowing costs, erratic electricity supply, and infrastructure deficits.
The Nigerian Economic Summit Group’s Business Confidence Monitor (BCM) for July 2026 showed the Current Business Performance Index climbing to 108.6 points, up from 105.2 in June, marking the strongest reading since February. While the figure remains below February’s 117.2-point peak, it confirms sustained growth, with any score above 100 indicating improving business conditions.
Sectoral Gains Across the Board
The NESG attributed the uptick to stronger performance across every sector, fueled by higher production, firmer demand, improved operating margins, better cash positions, and brighter employment outlooks.
Agriculture posted a significant gain, rising to 110.8 points from 103.9 in June. Manufacturing followed suit, climbing to 110.5 from 106.4. The non-manufacturing sector led the pack with a sharp jump to 116.6 from 106.8, while services rebounded into expansion at 108.3 from June’s 98.5 contraction reading.
July’s performance also topped the 101.9 points recorded in July 2025.
Within the Services Sector
Financial services, real estate, and professional, scientific, and technical services held steady in positive territory. Broadcasting bounced back from a June contraction. However, telecommunications and IT services slipped into negative territory, while other services hovered near the 100-point neutral mark.
Trade remained positive, edging up to 102.8 from 102 in June, though slightly below the 103.2 recorded a year earlier.
Key Indicators in the Green
Several core indicators remained firmly in expansion territory: general business conditions, production levels, demand, operating profit, financial performance, supply orders, credit access, cash flow, and employment.
Oil and Gas Lead the Charge
The July surge was powered by the oil and gas value chain—especially oil services and crude/natural gas production. Oil services returned to expansion after a weak patch, while crude and gas activities grew more strongly than in June.
Persistent Challenges Remain
Despite the optimism, conditions remain tough. Manufacturers are wrestling with elevated production costs—driven by expensive electricity, diesel, logistics, and borrowing.
Inflation eased marginally to 15.91 percent in June from 15.93 percent in May, but food prices stayed high, and weak consumption continues to limit sales growth.
Financing Remains Tight
The Central Bank of Nigeria held the Monetary Policy Rate at 26.5 percent in July, keeping credit expensive—especially for manufacturers and SMEs reliant on bank loans for working capital.
Recent surveys by the Manufacturers Association of Nigeria and the Centre for the Promotion of Private Enterprise identified energy costs, exchange rate volatility, infrastructure gaps, and costly credit as the top constraints on productive sectors.
