Nigeria’s business activity continued its growth streak for the twelfth month in a row in December 2025, according to the latest NESG–Stanbic IBTC Business Confidence Monitor (BCM). While the overall economy remains in expansion, the pace has slowed as businesses face rising operating costs and weakening consumer demand. Analysts note that businesses are increasingly adopting a cautious approach amid uncertainty over policy reforms and broader economic conditions.
The report revealed that the Current Business Performance Index dipped slightly to 112.0 points in December from 113.3 points in November, though it remains 11.2 points above the same period last year. All five major sectors—Agriculture, Manufacturing, Trade, Non-Manufacturing, and Services—remained in expansion, but three experienced slower growth compared to November. Rising costs, supply constraints, and softening demand are tempering confidence across the private sector.
Agriculture posted the strongest growth, driven by seasonal demand and improvements in crop production, livestock, and agro-allied activities. The sector benefited from better access to inputs, supportive macroeconomic conditions, mechanization, and improved harvests. Manufacturing activity also grew, supported by output in Food, Beverages, Tobacco, Textile, Plastic, and Electronics sub-sectors, though areas like Cement, Iron, Steel, and Wood Products recorded contraction due to structural bottlenecks.
Other sectors showed signs of moderation. Trade slowed as seasonal sales were offset by weak consumer purchasing power, while Services recorded its second consecutive slowdown, affected by high operating costs, poor infrastructure, and limited access to finance. Non-Manufacturing also lost momentum despite remaining in expansion, highlighting persistent structural challenges that could limit broader economic growth.
Overall, Nigeria’s private sector remains resilient, with optimism about gradual improvement. The Future Business Expectation Index stayed above last year’s level, signaling cautious hope among businesses. Experts emphasize that sustaining growth will require targeted reforms, cost containment, and infrastructure improvements, especially if Nigeria wants to maintain momentum and achieve more inclusive growth through 2026.
source: nairametrics