Nigeria’s Business Performance Index maintained positive momentum for the sixth consecutive month in 2025, reflecting sustained economic resilience and cautious optimism among businesses.
This is according to the June 2025 edition of the NESG-Stanbic IBTC Business Confidence Monitor (BCM) report released in July.
The report stated that the Current Business Performance Index for June rose to 113.6 points, an improvement from 109.8 points in May.
This shows continued expansion, with the index consistently staying above the 100-point threshold that separates growth from contraction.
The Business Confidence Measure, which captures business sentiment regarding future performance, surged to 134.5 points in June its highest level so far in 2025.
Despite these positive indicators, limited access to finance was reported as the most pressing constraint for businesses in June. Other challenges, in descending order, include inadequate power supply, foreign exchange volatility, unclear economic policies, and high commercial lease and property rental costs.
Manufacturing Sector Leads Growth
Among all sectors, manufacturing emerged as the top performer, with the sector index climbing to 123.6 points in June, up from 114.4 points in May.
This jump reflects solid growth in key sub-sectors including Textile, Apparel & Footwear, Cement, Plastic and Rubber Products, Wood and Wood Products and Pulp, Paper and Paper Products.
These industries were instrumental in driving the expansion, with firms reporting increased production volumes and stronger supply chain performance.
However, manufacturers continue to grapple with significant structural hurdles. The report cited raw material shortages, unstable electricity supply, high import tariffs, and escalating inflation as major threats. Rising diesel costs, coupled with a depreciating naira, have further increased input costs. Other impediments include multiple taxation, poor access to credit, insecurity, and uncertain regulatory policies.
Recently, the Manufacturers Association of Nigeria (MAN) called on the Central Bank of Nigeria (CBN) to reconsider its monetary policy stance and implement a rate cut to ease inflation and revive growth in the real sector.
This call follows the recent decision of the CBN’s Monetary Policy Committee (MPC), which at its 301st meeting held on July 21 and 22, 2025, resolved to retain the Monetary Policy Rate (MPR) at 27.5%.
“The expectation of MAN is to have a rate cut that is supported by a robust fiscal policy framework capable of facilitating improved access to long-term loans, enhanced productivity, and sustained economic growth,” the association said in a statement.
Non-Manufacturing Sector Faces Mixed Fortunes
The non-manufacturing sector posted a still-positive index of 120.7 points in June 2025, but this represented the second consecutive monthly decline, down from 122.2 in May and 123.6 in April.
The downward trend demonstrates increasing concerns among service-based industries about the macroeconomic environment.
High operational costs—driven by soaring energy prices, dilapidated infrastructure, and rising transportation expenses—are impacting efficiency and eroding business margins, the report noted.
The report also noted difficulties accessing finance and the negative impact of foreign exchange instability on planning and procurement.
While most sub-sectors posted growth, some—particularly Motor Vehicle and Assembly—recorded declines. Still, the overall gains in leading sub-sectors outweighed these losses, reinforcing the sector’s upward trajectory.
More insights
The report noted that the BCM results have been revised or updated to have an origin of 100 as cut-off points for distinguishing performance.
For current business performance, index points below 100 are considered “Contraction”, and above 100 are “Expansion”. In the same vein, index points below 100 are considered “Pessimism”, and above 100 are “Optimism” for the future business expectation.
