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Nigeria’s private sector sustained growth in June 2026 despite mounting operational challenges, with businesses continuing to expand amid high operating costs, limited access to finance, infrastructure deficits and persistent insecurity, according to the Nigerian Economic Summit Group (NESG).
The group’s June 2026 Business Confidence Monitor (BCM) showed that the Current Business Performance Index held steady at 104.6 points, unchanged from May. Although the reading remained above the 100-point threshold that signals business expansion, it was lower than the 113.6 points recorded in June 2025, indicating that the pace of growth has moderated over the past year.
According to the report, manufacturing, agriculture, non-manufacturing and trade all recorded expansion during the month, while the services sector slipped into contraction.
“The Current Business Performance Index remained at 104.6 points relative to May 2026, but this represents a notable decline from the 113.6 points recorded in June 2025,” the report stated.
The NESG noted that manufacturing and trade continued to grow despite weaker performance than the previous month, while agriculture and non-manufacturing returned to expansion. In contrast, the services sector recorded a decline in business activity during the period.
The report showed that key business indicators—including production, customer demand, operating profit, financial performance, supply orders, cash flow, employment and access to credit—remained in expansion territory. However, investment activity, exports and inventory accumulation continued to weaken.
Businesses also continued to contend with limited access to financing, unreliable electricity supply, rising rental costs and insecurity, although the overall cost of doing business eased marginally during the month.
Sectoral performance remained mixed.
Agriculture rebounded into expansion, with its Business Confidence Index rising to 103.9 points from 97.5 points in May. The improvement was attributed to early harvests and favourable rainfall, which supported crop production despite continued challenges in livestock and forestry.
Manufacturing also remained in positive territory, recording an index of 106.4 points. However, this represented a decline from 114.1 points in May and 123.6 points in June 2025. While the textile, apparel and footwear segment recorded stronger performance, industries including food and beverages, cement, plastics and rubber products, and basic metals experienced slower growth.
Non-manufacturing activities recovered to an index of 106.8 points, driven primarily by stronger performance in construction and crude petroleum, although oil and gas services remained in contraction.
The services sector recorded an index of 98.5 points, reflecting weaker activity among financial institutions, telecommunications, real estate and broadcasting businesses. Meanwhile, the trade sector maintained expansion at 102.0 points, although wholesale trade slowed and retail activities contracted.
According to the NESG, high financing costs, unreliable power supply, infrastructure deficiencies, insecurity and regulatory uncertainty continued to constrain investment, erode profit margins and limit employment growth across the economy.
Despite these headwinds, businesses expressed greater optimism about the near-term outlook.
The Future Business Expectation Index increased to 128.4 points in June from 127.0 points in May, reflecting stronger confidence in business conditions over the next one to three months.
The report attributed the improved outlook partly to easing geopolitical tensions in the Middle East, which contributed to lower international crude oil prices.
According to the NESG, average global oil prices declined to approximately $87.7 per barrel in June from about $112 per barrel in May, providing a more favourable outlook for business activity and economic stability.
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