Nigeria’s business environment showed modest improvement in August 2025, with the NESG-Stanbic IBTC Business Confidence Monitor (BCM) reporting a Current Business Performance Index of 107.3 points, up 1.9 points from July. Titled “Mixed Signals: Strong Sectoral Growth Versus Structural Hurdles,” the report highlights gains in technology, finance, manufacturing, energy, and logistics, driven by targeted investments and reforms. However, persistent structural issues continue to hamper growth.
The report noted strong rebounds in trade (114.1 points), manufacturing (106.2), non-manufacturing (116.2), and services (103.7), with trade leading after a July decline. In contrast, agriculture contracted to 95.6 points, driven by declines in crop production and forestry due to delayed rainfall, shorter wet seasons, insecurity, and disrupted planting schedules. While livestock, fishing, and agro-allied sub-sectors showed slight improvements, rising costs for poultry feed, fertilizers, and other inputs have strained agribusinesses, leading to stagnation or closures.
Key challenges in August included limited access to financing, unclear economic policies, unreliable electricity, high lease and rental costs, and ongoing insecurity. Sub-indices for investment, exports, credit access, and prices weakened compared to July, with rising input costs and declining consumer purchasing power further eroding profit margins. The report emphasized that volatile demand and price instability are stifling reinvestment and expansion, particularly in agriculture, where operations face significant hurdles.
Despite the uptick in the business index, the report underscores the fragility of Nigeria’s economic recovery. The cost of doing business rose in August, reversing marginal relief from the previous month. To bolster resilience and sustain sectoral contributions to national growth, the report calls for urgent policy interventions to stabilize the economy, enhance infrastructure, improve security, and facilitate easier access to financing. These measures are critical to addressing structural bottlenecks and supporting businesses in navigating Nigeria’s challenging economic landscape.
