Nigeria's Business Activity Expands for Sixth Month, but Faces Constraints

Nigeria's business environment continued its expansion in June 2026, marking the sixth consecutive month of growth, according to the NESG Business Confidence Monitor (BCM) Index. The index remained above 100, indicating expansion, though some sectors experienced a slowdown compared to previous periods.

Manufacturing and trade sectors, while still in expansion, showed weaker performance in June compared to May. The agriculture sector, however, improved, moving into the expansion region with an index of 103.9, up from 97.5 in May. The non-manufacturing sector also entered the expansion territory, while the services sector contracted during the month.

Key sub-indices tracking general business situation, production, demand, operating profit, and employment remained in expansion, with over half showing stronger performance than in May. However, trade stockpiling moved into contraction, and investment and exports remained depressed. Input prices stayed elevated despite a moderation in the cost of doing business.

Manufacturers grappled with persistent challenges, including limited access to finance, frequent power outages, high rental costs, and insecurity. These factors squeezed profit margins and constrained new investments, hindering overall growth potential despite the positive business environment.