Nigeria’s Business Performance Index (BPI) has maintained a positive performance streak for the fifth consecutive month in 2025.
The Current Business Performance Index for May 2025 stands at +9.78, signaling mildly positive business activity, though slightly lower than the +12.29 recorded in April 2025, signaling a positive outlook for private sector activities and showing an improvement from the +6.58 recorded in March 2025.
This was disclosed in the May 2025 NESG-Stanbic IBTC Business Confidence Monitor (BCM) released in June, titled “Enduring Infrastructure and Financial Conundrum Constraint Business Growth.”
The report noted that the ranking of business constraints in May remained largely unchanged from April, with power supply shortages continuing to rank as the most significant obstacle to business expansion.
Manufacturing, Trade, and Services sectors recorded strong performances
According to the report, strong performances were noted in Non-manufacturing (+22.19), followed by Manufacturing (+14.43), Trade (+14.13), and Services (+4.49). In contrast, Agriculture posted a negative index of -1.77, primarily driven by existing structural issues and amplified by the intensified impacts of climate change, including prolonged droughts, erratic rainfall, extreme heat waves, and shorter wet seasons.
Compared to April 2025, all sectors experienced a slowdown in performance, except Manufacturing, which remained resilient.
However, agriculture recorded a negative performance at -1.77. According to the report’s commentary, “Survey participants linked this to worsening unfavourable weather conditions, including shorter wet season and extreme heat waves.”
Mixed signals in sub-indices
Most BCM sub-indices showed lower values compared to the previous month. The general business situation remained positive, with reported improvements in production levels, operating profits, cash flow, and employment. However, the cost of doing business declined to +38.54 in May from +51.79 in April.
Two significant negative indicators were highlighted: a steep decline in investment confidence (-25.61) and falling price levels (-18.15), both of which contributed to weaker business activity and slower growth during the month.
The report noted further that the cost of doing business declined to +38.54 in May from +51.79 in April.
Key constraints to business expansion in May 2025, highlighted in the report, included persistent power supply shortages, limited access to financing, high commercial lease and rental costs, inadequate foreign exchange availability, inconsistent economic policies, and worsening insecurity. In particular, the resurgence of security challenges posed severe disruptions to business operations. Similarly, restricted access to finance has remained a structural bottleneck, further dampening business prospects.
