Nigeria’s business sector continued to show resilience in June 2026, maintaining a steady level of confidence despite mounting economic pressures. According to the Nigerian Economic Summit Group (NESG) Business Confidence Monitor, the Current Business Performance Index held firm at 104.6 points, unchanged from May. While this signals that businesses are still expanding, the figure represents a notable decline from the 113.6 points recorded in June 2025, highlighting a slowdown in the pace of growth over the past year.
The report paints a picture of an economy where businesses are working hard to stay afloat amid persistent challenges. High operating costs, limited access to finance, unreliable electricity supply, rising rental expenses, insecurity and regulatory uncertainties continue to weigh heavily on business operations. Despite these obstacles, key indicators such as production levels, customer demand, profitability, cash flow, employment and access to credit remained in positive territory, demonstrating the determination of firms to sustain growth.
Performance varied significantly across sectors. Agriculture emerged as one of the strongest performers, returning to expansion with a confidence index of 103.9 points, supported by favourable rainfall and early harvests that boosted crop production. Non-manufacturing activities also rebounded, driven by stronger construction and crude petroleum operations. Manufacturing remained in expansion mode but lost momentum compared to previous months, as several major subsectors including food and beverages, cement, plastics and basic metals experienced weaker performance.
Not all sectors shared the positive momentum. The services industry slipped into contraction, recording an index of 98.5 points amid weaker activity in financial services, telecommunications, real estate and broadcasting. Trade activities continued to expand overall, but growth slowed as wholesale trade weakened and retail trade contracted. The NESG noted that high financing costs, infrastructure deficiencies and security concerns continue to discourage fresh investment, squeeze profit margins and limit job creation across the economy.
Despite the challenges, businesses are increasingly optimistic about the near future. The NESG’s Future Business Expectation Index rose to 128.4 points in June from 127.0 points in May, reflecting stronger confidence in economic conditions over the next one to three months. The group attributed this optimism partly to easing geopolitical tensions in the Middle East, which contributed to a decline in global crude oil prices. As businesses navigate a difficult operating environment, the improved outlook suggests that many are hopeful that economic conditions will gradually become more supportive in the months ahead.
source: The guardian
