Nigeria’s business environment remained in expansion in June 2026, though growth slowed from a year earlier as high operating costs, limited credit and infrastructure challenges continued to pressure businesses.
This is according to the June 2026 Business Confidence Monitor released by the Nigerian Economic Summit Group, which showed that the Current Business Performance Index remained unchanged at 104.6 points in June, the same level recorded in May.
However, the reading was significantly lower than the 113.6 points recorded in June 2025, reflecting a slower pace of business expansion despite improvements across several sectors.
The report also showed that while manufacturing, agriculture, non-manufacturing and trade remained in expansion territory, the services sector slipped into contraction during the month.
The NESG said businesses continued to expand in June despite mounting operating challenges.
“The NESG Business Confidence Monitor (BCM) Current Business Performance Index was unchanged at 104.6 points relative to May 2026, but this marked a significant decline from 113.6 points in June 2025,” the report stated.
Manufacturing and Trade remained in expansion, although both sectors recorded weaker performance compared with the previous month.
Agriculture and Non-manufacturing returned to expansion territory, while the Services sector contracted during the month.
Key business indicators including production, demand, operating profit, financial performance, supply orders, cash flow, employment and access to credit remained in expansion, although investment and exports stayed depressed while trade stockpiling contracted.
NESG noted that businesses continued to face significant headwinds, including limited access to finance, persistent electricity shortages, rising rental costs and insecurity, even as the cost of doing business moderated slightly.
Sectoral performance remained mixed during June, with agriculture and non-manufacturing showing stronger momentum while manufacturing and services weakened.
Agriculture returned to expansion as its Business Confidence Index rose to 103.9 points from 97.5 points in May, supported by early harvests and sustained rainfall that boosted crop production. However, livestock and forestry activities remained under pressure.
Manufacturing stayed in expansion at 106.4 points, down from 114.1 points in May and 123.6 points a year earlier. Textile, Apparel and Footwear improved, while Food, Beverage and Tobacco, Cement, Plastic and Rubber Products, and Basic Metals recorded weaker performance.
Non-manufacturing moved back into expansion with an index reading of 106.8 points, driven by stronger activity in construction and crude petroleum, although oil and gas services remained in contraction.
The Services sector slipped into contraction with an index of 98.5 points, weighed down by weaker performance across financial institutions, telecoms, real estate and broadcasting, while the Trade sector remained in expansion at 102.0 points, although wholesale activity slowed and retail trade contracted.
According to the report, elevated financing costs, erratic electricity supply, infrastructure deficiencies, insecurity and regulatory uncertainties continued to constrain investment, squeeze profit margins and weaken employment growth across sectors.
Despite current operational challenges, Nigerian businesses remain optimistic about short-term economic conditions.
The NESG Future Business Expectation Index increased to 128.4 points in June from 127.0 points in May, indicating stronger business confidence over the next one to three months.
NESG attributed the improved outlook partly to easing geopolitical tensions in the Middle East, which contributed to lower global crude oil prices, averaging $87.7 per barrel in June compared with $112 per barrel in May.
Nairametrics earlier reported that Nigeria’s trade sector contributed 17.89 per cent to the country’s Gross Domestic Product in the first quarter of 2026.
Nigeria’s economy recorded overall real GDP growth of 3.89 per cent year-on-year in Q1 2026.
