Nigerian Business Growth Slows Amid High Costs and Credit

The Nigerian Economic Summit Group (NESG) reported that business growth in Nigeria has slowed, primarily due to high operating costs, credit constraints, and persistent infrastructural issues. The current business performance index held steady at 104.6 points in June 2026, unchanged from May 2026, but significantly lower than the 113.6 points recorded in June 2025.

The report indicates mixed performance across sectors, with manufacturing, agriculture, and non-manufacturing sectors experiencing expansion, while the service sector contracted. Despite a rebound in agriculture, the manufacturing sector faced challenges, particularly in food, beverage, and tobacco production.

The non-manufacturing sector returned to expansion, supported by construction and crude petroleum activities. However, the service sector recorded a decline, attributed to weaker performance in financial services and telecommunications.

Overall, businesses expressed a more optimistic outlook for the near term, with the business expectation index rising to 128.4 points in June 2026, up from 127.0 points in May 2026, reflecting improved sentiment partly due to easing geopolitical tensions.