Nigeria’s business environment records fragile expansion in May

Orisemeke Benjamin

The NESG Business Confidence Monitor (BCM) Current Business Performance Index rose to 104.6 points in May from 102.1 points in April 2026. However, the index reading represents a downturn from 109.8 points recorded in May 2025.

Further breakdown indicates broadly positive performance across sectors in May 2026. Manufacturing moved into the expansion territory (114.1 points from 98.7 in April 2026).

Similarly, the index reading rose for Services (103.5 points from 101.5) and Trade (105.5 points from 102.7). However, business activity slipped into the contraction region in Manufacturing (99.4 points from 101.6) and Agriculture (97.5 points from 103.2) during the month.

Key BCM sub-indices, including general business situation, production, demand conditions, operating profit, financial results, supply order, access to credit, cash flow, and employment, remained in the expansion territory, even though only a few performed relatively better than in April 2026.

Trade stockpiling fell into contraction, with sub-indices including investment and export remaining in the contraction territory. Notably, robust demand conditions largely reflect festivity-induced consumer spending. However, the cost of doing business and input prices remained elevated.

During the month, business activity faced key constraints, including limited access to finance, inadequate power supply, high office rental costs, and elevated insecurity.