Nigeria’s private sector growth continued in June, marking six consecutive months of expansion despite ongoing challenges such as high operating costs, insecurity, and limited access to finance, according to the latest Business Confidence Monitor (BCM) released by the Nigerian Economic Summit Group (NESG). The Current Business Performance Index (CBPI) remained steady at 104.6 points, unchanged from May, and above the 100-point threshold that signals economic expansion. However, the figure was lower than the 113.6 points recorded in June 2025, indicating a slowdown compared to the previous year’s performance.
The BCM, a monthly survey tracking business conditions and short-term outlooks, highlighted manufacturing and trade as the key drivers of growth. Agriculture and non-manufacturing also returned to expansion after contracting in May, reflecting a broader recovery across key productive sectors. Manufacturing recorded an index of 106.4 points, down from 114.1 in May, while trade stood at 102.0 points, a decline from 105.5 the previous month. Despite these dips, both sectors remained in positive territory, with wholesale trade maintaining momentum, though retail operators faced headwinds from financing constraints, power shortages, and rising logistics costs.
Agriculture showed strong recovery, with its index rising to 103.9 points from 97.5 in May, supported by seasonal harvests, improved crop yields, fishing activities, and increased agro-processing. Non-manufacturing also rebounded to 106.8 points from 99.4, driven by growth in construction and the oil and gas sector. In contrast, the services sector contracted, with its index falling to 98.5 points from 103.5 in May, as firms struggled with higher operating costs, regulatory uncertainty, and energy-related issues.
Businesses continue to face significant constraints, including elevated input costs, supply chain disruptions, unreliable electricity, limited credit access, and rising rental expenses. These challenges are undermining faster growth despite the overall positive trend. Nevertheless, business sentiment remains optimistic. The Future Business Expectations Index rose to 128.4 points in June from 127.0 in May, indicating that firms expect better conditions in the next one to three months. Trade recorded the highest confidence at 174.6 points, followed by manufacturing at 166.0, non-manufacturing at 142.8, agriculture at 127.4, and services at 112.7.
The sustained expansion underscores the resilience of Nigeria’s private sector amid persistent macroeconomic pressures. Economists emphasize that reducing inflation, improving electricity supply, expanding affordable financing, and tackling insecurity are essential to sustaining and accelerating growth in the coming months.
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