Nigeria’s Private Sector Extends Growth Streak to Six Months Despite Cost Pressures

Nigeria’s private sector remained on a growth path in June, extending its expansion streak to six consecutive months even as businesses continued to grapple with high operating costs, insecurity and financing constraints.

The latest Business Confidence Monitor (BCM) released by the Nigerian Economic Summit Group (NESG) showed that the Current Business Performance Index (CBPI) stood at 104.6 points in June, the same level recorded in May.

Although the reading remained comfortably above the 100-point benchmark that separates expansion from contraction, it was lower than the 113.6 points posted in June 2025.

The BCM, a monthly survey that gauges current business conditions and short-term expectations, showed that manufacturing and trade remained the principal drivers of private sector growth during the month.

Agriculture and non-manufacturing also returned to expansion after recording contractions in May, pointing to a broader improvement across productive sectors of the economy.

Despite the positive reading, businesses continued to operate under difficult conditions. Respondents identified elevated input costs, supply chain bottlenecks, limited access to finance, unreliable electricity, rising rental expenses and insecurity as the major factors constraining operations and limiting faster growth.

Manufacturing remained one of the strongest-performing sectors with an index of 106.4 points, although this represented a slowdown from 114.1 points recorded in May.

According to the survey, manufacturers continued to face challenges including high production costs, limited credit availability, infrastructure deficiencies and shortages of raw materials.

Trade also stayed in expansion territory with an index of 102.0 points, down from 105.5 points a month earlier. While wholesale businesses maintained positive momentum, retail operators experienced weaker conditions amid financing constraints, power supply challenges and logistics costs.

Agriculture rebounded into expansion as its index climbed to 103.9 points from 97.5 points in May, supported by seasonal harvests, improved crop production, fishing activities and agro-processing.

Non-manufacturing also recovered, rising to 106.8 points from 99.4 points, largely driven by stronger activity in construction and the oil and gas sector.

The services sector was the only major segment to contract during the month with its index declining to 98.5 points from 103.5 points in May as businesses struggled with higher operating costs, regulatory uncertainty and energy-related challenges.

Despite the mixed sectoral performance, business sentiment remained upbeat. The Future Business Expectations Index increased to 128.4 points in June from 127.0 points in May, suggesting that firms anticipate improved operating conditions over the next one to three months.

Trade recorded the strongest confidence reading at 174.6 points followed by manufacturing at 166.0 points, non-manufacturing at 142.8 points, agriculture at 127.4 points and services at 112.7 points.

The sustained expansion in business activity provides further evidence that Nigeria’s private sector is showing resilience despite persistent macroeconomic headwinds.

However, economists say reducing inflation, improving electricity supply, expanding access to affordable financing and addressing insecurity remain critical to sustaining stronger business growth in the months ahead.