Nigeria’s business climate continued its upward momentum in October 2025 as Business Confidence Index climbed to 111.3 points—up from 107.9 points in September.
This is according to the latest NESG–Stanbic IBTC Business Confidence Monitor (BCM), which shows renewed optimism spreading across key sectors of the economy.
According to the report, the steady upward trend demonstrates improving perceptions of current business conditions and a more resilient economic outlook as inflationary pressures ease and the exchange rate shows relative stability.
The report revealed that Nigeria’s business environment “maintained its positive trajectory” with the Current Business Performance Index staying firmly in expansion territory.
October’s reading also represents a significant leap from 76.8 points recorded in the same period of 2024, indicating stronger year-on-year business sentiment.
Sectoral breakdown
A sectoral breakdown shows that all five broad economic sectors posted expansion in October. Manufacturing and Trade led the gains, rising by 8.8 points and 7.8 points respectively, to 111.3 and 115.4 points.
Non-Manufacturing (115.0), Agriculture (111.4), and Services (111.0) also maintained positive momentum, though with slower growth compared to September.
- The report noted that the Agriculture BCM Index climbed to 111.4 points in October, up from 107.3 in September.
- The improvement, the report noted, was driven largely by strong performances in Crop Production and Agro-Allied industries.
- The report said improved seed varieties, targeted government input support programmes, easing inflation, and a relatively stable exchange rate helped strengthen confidence among agricultural operators.
- Livestock and Forestry sub-sectors also recorded growth, albeit slower than the previous month, the report noted.
The report, however, noted sustained challenges in the sector, including shortages of raw materials, persistent outbreaks of animal diseases, and rising feed and input costs exacerbated by elevated exchange rate levels.
These pressures, according to the report, continue to push up production costs and market prices.
Manufacturing rebounds after previous contraction
The Manufacturing sector, according to the report, recorded a notable recovery, with its index jumping to 111.3 points from 102.5 in September. Key sub-sectors such as Food, Beverage & Tobacco and Cement bounced back after contracting in the previous month.
Businesses, according to the report, attributed the improved performance to relatively stable power supply, better access to finance, and greater stability in the foreign exchange market.
The report also noted that improved navigation of policy and regulatory challenges contributed to October’s rebound.
Services sector maintains modest growth
The Services sector sustained its expansionary momentum, rising to 111.0 points from 108.5 in September, the report said.
The growth, the report noted, was driven by modest improvements across several sub-sectors and a more favourable macroeconomic environment, defined by easing inflation and a more stable exchange rate.
However, two sub-sectors, Professional, Scientific & Technical Services and Other Services, recorded slower growth, highlighting the fragile nature of the sector’s recovery.
The report calls for urgent reforms to stabilise the economy, strengthen infrastructure, enhance security, and improve access to credit to sustain growth.
Why this matters
The rise in the NESG–Stanbic IBTC Business Confidence Index to 111.3 in October carries several important implications for Nigeria’s economy, policy direction, and business environment.
The sustained increase in the BCM shows that private-sector operators are gradually regaining confidence. This optimism is tied to easing inflationary pressures, better FX stability, and improvements in business activity across key sectors.
All five major economic sectors, Manufacturing, Trade, Agriculture, Services, and Non-Manufacturing, remained in the expansion zone. This means the recovery is not isolated to a few industries; rather, growth is becoming more evenly distributed. Broad-based expansion typically signals stronger economic resilience.
What you should know
Earlier, Nairametrics reported that Nigeria’s private sector continued its upward trajectory in November 2025, as the Composite Purchasing Managers’ Index (PMI) climbed to 56.4 index points, up from 55.4 in October.
This rise signals a stronger and broad-based expansion in aggregate economic activity, reinforcing the country’s steady economic rebound throughout the year.
