Nigeria business environment remained in expansion in June 2026, but growth slowed as companies continued to face high operating costs, limited access to credit, weak infrastructure and insecurity.
The latest Business Confidence Monitor released by the Nigerian Economic Summit Group showed that the Current Business Performance Index stood at 104.6 points in June, unchanged from May.
However, the June figure was far below the 113.6 points recorded in the same month of 2025, suggesting that business expansion continued but at a weaker pace than a year earlier.
The report showed mixed performance across major sectors. Manufacturing, agriculture, non manufacturing and trade remained in expansion, while the services sector slipped into contraction.
The NESG said production, customer demand, operating profit, financial performance, supply orders, cash flow, employment and access to credit remained positive during the month.
Investment, exports and inventory accumulation, however, continued to weaken as businesses remained cautious.
The group said companies were still battling high borrowing costs, unreliable electricity, rising rent, poor infrastructure, insecurity and regulatory uncertainty, even though the overall cost of doing business moderated slightly during the period.
Agriculture returned to expansion with an index of 103.9 points, up from 97.5 points in May, supported by early harvests and favorable rainfall that boosted crop production. Livestock and forestry activities remained weak.
Manufacturing stayed positive at 106.4 points, but declined from 114.1 points in May and 123.6 points in June 2025. The slowdown was linked to weaker performance in food, beverages and tobacco, cement, plastics, rubber products and basic metals, despite improved activity in textiles, apparel and footwear.
The non manufacturing sector returned to expansion at 106.8 points, driven by construction and crude petroleum production, while oil and gas support services remained in contraction.
The services sector fell to 98.5 points as weaker activity in financial services, telecommunications, real estate and broadcasting outweighed gains elsewhere.
Trade recorded modest growth at 102.0 points, although wholesale trade weakened and retail activities contracted.
The NESG said elevated financing costs, poor power supply, infrastructure gaps, insecurity and regulatory uncertainty continued to limit investment, reduce profit margins and restrict employment growth.
Despite the challenges, businesses expressed stronger optimism about the near term outlook. The Future Business Expectation Index rose to 128.4 points in June from 127.0 points in May.
The group linked the improved sentiment partly to easing geopolitical tensions in the Middle East, which helped moderate global crude oil prices.
The report was released against the background of Nigeria improved macroeconomic performance, with the economy growing by 3.89 per cent year on year in the first quarter of 2026 and trade accounting for 17.89 per cent of gross domestic product.
