Business Expansion in Nigeria Driven by Manufacturing Growth

The Nigeria Economic Summit Group (NESG) released its Business Confidence Monitor (BCM) report for May 2026, revealing an increase in the current business performance index to 104.6 points, up from 102.1 in April 2026. This improvement is attributed to positive performance across sectors, particularly manufacturing, which rose to 114.1 points from 98.7 in April.

The services sector also showed growth, reaching 103.5 points, while trade increased to 105.5 points. Despite this expansion, challenges persist, including limited access to finance, frequent power outages, high rental costs, and ongoing insecurity.

The manufacturing sector's growth was driven by subsectors like food and beverages, textiles, and basic metals, although it faced constraints such as high input prices and inadequate infrastructure. Conversely, the agricultural sector contracted to 97.5 points, reflecting challenges in crop production, while livestock maintained stability.

The non-manufacturing sector also faced a decline, with the index falling to 99.4 points, indicating ongoing difficulties in business operations.