Nigeria’s Business Confidence Index rose to 111.3 points up from 107.9 points in September.
This is according to the latest NESG–Stanbic IBTC Business Confidence Monitor (BCM).
According to the report, the steady upward trend demonstrates improving perceptions of current business conditions and a more resilient economic outlook as inflationary pressures ease and the exchange rate shows relative stability.
It further showed that Nigeria’s business environment “maintained its positive trajectory” with the Current Business Performance Index staying firmly in expansion territory.
October’s reading also represents a significant leap from 76.8 points recorded in the same period of 2024, indicating stronger year-on-year business sentiment.
A sectoral breakdown shows that all five broad economic sectors posted expansion in October. Manufacturing and Trade led the gains, rising by 8.8 points and 7.8 points respectively, to 111.3 and 115.4 points.
Non-Manufacturing (115.0), Agriculture (111.4), and Services (111.0) also maintained positive momentum, though with slower growth compared to September.
The report noted that the Agriculture BCM Index climbed to 111.4 points in October, up from 107.3 in September.
The growth, according to the report, was driven largely by strong performances in Crop Production and Agro-Allied industries.
The report said improved seed varieties, targeted government input support programmes, easing inflation, and a relatively stable exchange rate helped strengthen confidence among agricultural operators.
Livestock and Forestry sub-sectors also recorded growth, albeit slower than the previous month, the report noted.
The report, however, noted sustained challenges in the sector, including shortages of raw materials, persistent outbreaks of animal diseases, and rising feed and input costs exacerbated by elevated exchange rate levels.
These pressures, it said, continue to push up production costs and market prices.
The Manufacturing sector, according to the report, recorded a notable recovery, with its index jumping to 111.3 points from 102.5 in September. Key sub-sectors such as Food, Beverage & Tobacco and Cement bounced back after contracting in the previous month.
Businesses attributed the improved performance to relatively stable power supply, better access to finance, and greater stability in the foreign exchange market.
The report also noted that improved navigation of policy and regulatory challenges contributed to October’s rebound.
The Services sector sustained its expansionary momentum, rising to 111.0 points from 108.5 in September, the report said.
The growth, the report noted, was driven by modest improvements across several sub-sectors and a more favourable macroeconomic environment, defined by easing inflation and a more stable exchange rate.
However, two sub-sectors, Professional, Scientific & Technical Services and Other Services, recorded slower growth, highlighting the fragile nature of the sector’s recovery.
The report calls for urgent reforms to stabilise the economy, strengthen infrastructure, enhance security, and improve access to credit to sustain growth.
The rise in the NESG–Stanbic IBTC Business Confidence Index to 111.3 in October shows that private-sector operators are gradually regaining confidence, with all five major economic sectors, Manufacturing, Trade, Agriculture, Services, and Non-Manufacturing, remaining in the expansion zone.
