By: Chidozie Nwali
Lagos, sept 3 – A new report from the Nigerian Economic Support Group (NESG) -Stanbic IBTC Business Confidence Monitor reveals a slight improvement in Nigerian business performance and a stronger sense of optimism for the future in August 2025.
The report, which is based on a survey of business managers and executives across Nigeria, shows that while the economy is experiencing sectoral growth, it continues to face significant structural challenges, especially in securing financing.
According to the report Current Business Performance Index for August 2025 reached 107.3 points, an increase of 1.9 points from July 2025. The Future Business Expectation Index also saw a positive leap, rising to 131.5 points from 126.1 in the previous month.
The report notes that this optimism is driven by anticipated gains in areas such as higher operating profits, increased production levels, and stronger demand conditions.
Despite the overall positive trend, the report highlights a number of constraints on business growth. For the second consecutive month, limited access to financing was identified as the most significant challenge. Other major obstacles include unclear economic policies, inadequate power supply, high commercial lease and property rental costs, and insecurity.
Sectoral Performance
- The Manufacturing sector rebounded from a contraction in July, with its index climbing to 106.2 points in August. This recovery was largely fueled by improved performance in key sub-sectors, including Food, Beverage and Tobacco; Textile, Apparel and Footwear; and Wood and Wood Products. However, rising energy costs and elevated interest rates continue to pose a threat.Nigeria has one of the highest interest rates in Africa at 27.50%
- According to the report, the trade sector showed the highest level of optimism for future performance, despite ongoing challenges. The sector’s index rebounded to 114.1 points, an increase of 10.9 points from July. Businesses in this sector are still contending with unreliable power supply, poor road infrastructure, and multiple taxation.
- The Non-manufacturing sector also saw a strong recovery, with its index rising to 116.2 points, halting a quarter of reduced business activity. This was attributed to an improved business environment and rising investments.
- Similarly, Services sector experienced modest growth, with its business confidence index edging up to 103.7 points. The report notes that while all sub-sectors stayed in the expansion region, growth was limited by fragile business conditions.
- The Agriculture sector was the only sector to slip into a contraction, with its index falling to 95.6 points from 107.0 in July. This decline was linked to climate variability, delayed rainfall, and insecurity.
