Nigeria’s enterprise local weather recorded a modest enchancment in August 2025, at the same time as structural constraints proceed to weigh closely on progress.
That is in response to the newest NESG-Stanbic IBTC Enterprise Confidence Monitor (BCM) tiled “Blended Alerts: Robust Sectoral Development Versus Structural Hurdles”.
In keeping with the report, the Present Enterprise Efficiency Index rose to 107.3 factors in August, representing a rise of 1.9 factors from its July 2025 degree.
“This restoration was pushed by stronger efficiency in know-how, finance, manufacturing, vitality, and logistics, supported by focused investments and ongoing reforms.
“Nevertheless, these features have been tempered by structural bottlenecks affecting operational effectivity and enterprise profitability,” the report famous.
Commerce, manufacturing, companies recorded strongest rebound in August
In keeping with the report, the sectoral assessment confirmed enhancements throughout industries and broader financial actions with commerce recording the strongest rebound in August following July decline.
In the meantime, Manufacturing (106.2), non-manufacturing (116.2), Commerce (114.1), and Providers (103.7) all superior in August in comparison with July 2025.
Conversely, Agriculture slipped into contraction territory, recording 95.6 index factors.
This decline was primarily pushed by contractions in Crop Manufacturing and Forestry sub-sectors.
The sector’s contraction, the report famous, is linked to a number of elements, together with local weather variability attributable to delayed rainfall and shorter moist seasons, insecurity, and disruptions to crop planting that prolonged into August 2025.
“A breakdown of efficiency throughout the 5 agricultural sub-sectors revealed that two—Crop Manufacturing and Forestry—slipped into contraction, whereas Livestock and Fishing recovered from the weak spot noticed in July 2025. The three increasing sub-sectors—Livestock, Fishing, and Agro-Allied—recorded slight efficiency enhancements in comparison with July 2025,” the report famous.
Key enterprise challenges in August 2025
The report additionally famous that key sub-indices of the BCM, together with funding, exports, entry to credit score, and costs, registered decrease values relative to July 2025.
“The price of doing enterprise additionally rose in August, reversing the marginal aid of the earlier month. Moreover, enter costs continued to worsen in the course of the interval. Main constraints proscribing progress and efficiency in August 2025 have been restricted financing entry, unclear financial insurance policies, unreliable electrical energy provide, excessive lease and rental prices, and protracted insecurity,” the report said.
In Agriculture, the report recognized challenges equivalent to rising prices of poultry feed, fertilisers, and different essential inputs which have made operations tougher.
“Rising manufacturing prices and declining client buying energy are eroding margins. Value instability and unstable demand add additional uncertainty. Consequently, many agribusinesses battle to reinvest or develop operations, leading to stagnation and, in some circumstances, outright closure,” the report famous.
With enterprise situations nonetheless fragile, the report says there’s an pressing want for coverage measures that stabilise the financial system, enhance infrastructure, strengthen safety, and ease financing entry to strengthen the sector’s resilience and contribution to nationwide progress.
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