NESG: Manufacturing, trade sectors lead as Nigeria’s business environment improved in October

The Nigerian Economic Summit Group (NESG) says the manufacturing and trade sectors led business growth in October, with the sectors recording 8.8 and 7.8 point gains respectively.

According to the NESG–Stanbic IBTC Business Confidence Monitor (BCM), the country’s business environment in October maintained its positive trajectory, with the current business performance index remaining in the expansion zone.

“The NESG– Stanbic IBTC Business Confidence Monitor (BCM) recorded a marginal increase to 111.3 points from 107.9 points in September 2025 and 76.8 points in the same period of 2024,” the report wrote.

“This improvement reflects a mix of sectoral dynamics, particularly strengthened business performance across sectors and a surge in growth within the manufacturing sector.

“A sectoral review showed that all five broad economic activities remained in the expansion region.

“The Manufacturing and Trade sectors recorded the strongest gains, rising by 8.8 and 7.8 points to 111.3 and 115.4, respectively, during the month.

“Non-Manufacturing (115.0), Agriculture (111.4), and Services (111.0) also expanded, albeit at a slower pace than in September 2025.

“Key BCM sub-indices—investment, exports, access to credit, and prices—posted modest improvements relative to August 2025, indicating a more positive outlook for capital formation and external trade.”

The report showed that in October, the cost of doing business and input prices reversed the previous month’s improvement, though at a slower rate, suggesting a gradual easing of inflationary pressures on firms.

However, the BCM added that lingering financing constraints, high commercial property costs, unclear policy signals, erratic power supply, and persistent insecurity continued to dampen business performance and confidence.

Also, Stanbic IBTC said going into 2026, the non-oil sector’s growth should remain strong amid a likely reduction in interest rates and lower inflation, both of which should support aggregate demand and private investment.