Following series of economic reforms by the Federal Government, Nigeria’s business environment has sustained its upward trajectory.
Figures from February 2025 show promise, with a Current Business Performance Index of +11.50 , up from +5.69 in January.
This marks the second consecutive month of improvement, signaling cautious optimism across sectors despite lingering structural challenges.
These are part of findings from the Nigerian Economic Summit Group (NESG-Stanbic IBTC) Business Confidence Monitor (BCM) made available to Voice of Nigeria (VON).
The BCM survey, conducted in Lagos, Abuja, and Kano, captures insights from senior executives across 45 sub-sectors.
Dr. Olusegun Omisakin, NESG’s Chief Economist, said the figures clearly show an improving economic climate that required policy consistency.
“The sustained recovery reflects improved liquidity and demand, but structural reforms are critical to unlocking Nigeria’s full economic potential.”
Fact Sheet
The Trade sector emerged as the star performer, with a Future Business Expectations Index of +65.58 , driven by strong sales and seasonal demand.
Retail and Wholesale Trade sub-sectors rebounded sharply, reflecting improved consumer activity.
Manufacturing also turned positive (+10.35 ), buoyed by Food, Beverage, and Tobacco production, though high costs stifled Textiles and Cement.
Businesses anticipate stronger performance in Q1 2025, with the Future Business Expectations Index at +28.32 .
Key drivers include expected improvements in cash flow, production, and exports. However, optimism varies: Trade leads (+65.58 ), while Services trail (+21.71 ) amid inflationary pressures.
Muyiwa Oni of Stanbic IBTC maintained cautious optimism.
“While sectors like Trade and Manufacturing show resilience, addressing FX constraints and energy deficits will be key to sustaining momentum.”
Indeed, foreign exchange volatility, power shortages, and unclear economic policies remain top concerns, alongside a +47.18 Cost of Doing Business Index.
While businesses expect demand conditions and exports to strengthen in Q1 2025, concerns over inflation, interest rates, and weakened consumer purchasing power linger.
Looking ahead, the Future Business Expectation Index stood at +28.32, indicating cautious optimism across sectors.
“Businesses anticipate enhancements in the general business situation, cash flow, production levels, operating profits, and supply orders,” stated Dr. Shakirudeen Taiwo, Economist at NESG.
The report noted that mounting financial pressures challenge competitiveness, urging policy interventions to sustain recovery.
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