Nigeria’s business climate sustained a positive trajectory in August 2025, buoyed by a rebound in trade and manufacturing, according to the latest Business Confidence Monitor (BCM) jointly released by the Nigerian Economic Summit Group (NESG) and Stanbic IBTC.
The report showed that the Current Business Index climbed to 107.3 points in August, up from 105.4 points recorded in July, signaling stronger optimism among firms. Trade posted the most significant rebound at 114.1 points, while manufacturing improved to 106.2 points. The non-manufacturing and services sectors also advanced to 116.2 and 103.7 points, respectively.
However, the agricultural sector slipped into contraction territory, declining to 95.6 points. The report attributed this to seasonal factors, noting that crop production fell in August as the country entered the lean season ahead of the September harvest.
“This recovery was driven by stronger performance in technology, finance, manufacturing, energy, and logistics, supported by targeted investments and ongoing reforms,” the report stated. “Nevertheless, these gains were tempered by structural bottlenecks affecting operational efficiency and profitability.”
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Key sub-indices such as investment, exports, access to credit, and prices fell compared to July, while the cost of doing business rose, reversing earlier marginal relief. Businesses also faced higher input costs, unreliable electricity supply, limited financing, policy uncertainty, rising rental expenses, and insecurity.
Despite these challenges, the manufacturing sector rebounded after July’s contraction, supported by sub-sectors including food and beverages, textiles, wood products, and paper. Services remained in expansion for the sixth straight month, aided by improved foreign exchange liquidity and relative currency stability.
Stanbic IBTC projected Nigeria’s economy to expand by 3.5% year-on-year in 2025, up slightly from 3.4% in 2024, citing softer inflation, better FX liquidity, and ongoing structural reforms.
