…Business confidence extends 11-month expansion
Nigeria’s business environment continued its upward momentum in November 2025, marking the 11th consecutive month of expansion, according to the latest NESG Business Confidence Monitor (BCM) released in December.
The BCM—based on nationwide surveys from industry operators—captures real-time sentiment and short-term expectations across key sectors. The new report confirms that confidence remained strong through November, with improved operating conditions supporting overall performance.
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Business performance index rises further
The Business Performance Index increased to 113.3 points, from 111.3 in October 2025, and significantly higher than the 97.3 recorded in November 2024. This sustained rise underscores broad improvements across multiple industries, with the trade sector standing out.
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Sectoral gains highlight broad-based recovery
A breakdown of the five major economic activities shows all segments remained firmly in the expansion zone:
- Trade surged by 71.1 points to 186.5.
- Non-manufacturing climbed from 96.4 (Nov 2024) to 117 (Nov 2025).
- Manufacturing rose from 96.4 to 114.2 year-on-year.
- Services improved from 97.9 to 105.8.
- Agriculture saw a more modest increase from 101.2 to 103.3.
These gains reflect strengthened sectoral activity and improved market confidence nationwide.
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Key sub-indices point to stronger operations
The BCM also reported modest improvements across major operational indicators, including general business conditions, production levels, supply orders, financial health, stockpiling, access to credit, and cash flow. These improvements suggest a more positive outlook for capital formation and external trade.
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Cost pressures ease but challenges persist
The report noted a slight decline in the cost of doing business, while input prices continued to rise at a slower pace—indicating early signs of easing inflationary pressure on firms.
However, the NESG highlighted several persistent challenges that continue to weigh on business sentiment. These include:
- Limited access to finance
- High commercial property costs
- Unclear policy direction
- Unreliable power supply
- Insecurity across key regions
These structural issues remain significant barriers to unlocking stronger growth and sustaining confidence across Nigeria’s economy.
