Nigeria’s Business Confidence Hits 13-Month High on Stable FX and Easing Inflation
Nigeria’s business confidence has reached its highest level in over a year, buoyed by easing inflationary pressures and a more stable foreign-exchange market, according to the latest NESG–Stanbic IBTC Business Confidence Monitor (BCM). The headline Business Confidence Index (BCI) rose to 111.3 points in October, up from 107.9 in September, reflecting growing optimism among private-sector operators despite ongoing security challenges.
The report highlights that businesses are gradually recovering from the volatility that plagued the economy over the past two years, including sharp FX swings, rising production costs, and policy uncertainty. While Nigeria’s annual inflation remains elevated, it has moderated from its February peak, easing pressure on consumer demand and helping firms plan and invest with more confidence.
All five major sectors tracked by the BCM reported expansionary readings in October. Manufacturing led the rebound, climbing to 111.3 points from 102.5 in September, supported by stronger performance in food, beverage, tobacco, and cement subsectors. Companies credited improved power supply, better access to financing, and a steadier naira as key drivers behind the sector’s revival. Trade activity also surged, with the sector index rising 7.8 points to 115.4, driven by robust wholesale and retail activity.
Agriculture maintained solid momentum, climbing to 111.4 points from 107.3, helped by better crop yields, enhanced agro-allied performance, and targeted government input-support programs. Services and non-manufacturing activities also strengthened, with broad-based gains across sub-sectors, though professional and technical services experienced slower growth. Despite the positive readings, challenges such as raw-material shortages, animal disease outbreaks, rising input costs, and infrastructure gaps continue to weigh on business sentiment.
The BCM report cautioned that while the recent rise signals renewed confidence among private-sector operators, sustaining this momentum will require urgent reforms to stabilize the economy, strengthen infrastructure, enhance security, and improve access to credit. Analysts say the coming months will be critical in determining whether Nigeria can consolidate these gains and maintain a more resilient economic outlook for businesses and consumers alike.
source: The sun