The latest Nigeria Economic Summit Group –Stanbic IBTC Business Confidence Monitor (BCM) titled “Rising Uncertainty Dampens Nigeria’s Current Business Conditions,” has revealed that Nigeria’s business activity expanded for the twelfth consecutive month in December 2025.
The report, however, showed that the pace of growth slowed amid rising costs and softer consumer demand.
It pointed out that while overall business conditions remained firmly in expansionary territory, structural bottlenecks, cost pressures, and weakening demand are beginning to temper confidence among businesses.
According to the report, the Current Business Performance Index edged down to 112.0 points in December 2025 from 113.3 points in November, but remained 11.2 points higher than its December 2024 level.
“This broad-based moderation points to a more cautious business stance and subdued consumer demand,” the report noted.
Itr further showed that all five major sectors: Agriculture, Manufacturing, Trade, Non-Manufacturing, and Services remained in expansion during the month, although three experienced slower growth compared with November.
According to the report, Agriculture posted the strongest performance, with its BCM index climbing 9.6 points to 112.9, driven by heightened seasonal demand.
Manufacturing also improved modestly to 117.9 points, while Trade (123.8), Non-Manufacturing (110.2), and Services (104.3) all recorded slower growth.
Key sub-indices, production, financial conditions, supply orders, credit access, and cash flow, moderately declined, reflecting rising business caution, while the cost of doing business increased to 61.6 points from 54.3 in November, highlighting persistent cost pressures.
The report attributed Agriculture’s rebound to stronger activity in Crop Production, Livestock, and Agro-Allied sub-sectors, fuelled by festive-season demand.
Livestock and Agro-Allied activities exited contraction territory, recording 105.2 points and 108.2 points, respectively.
According to the report, “Combined with good weather and improved harvests, improved access to inputs, growth in agro‑processing, supportive macroeconomic conditions, and increased mechanisation, strengthened overall business performance in the sector.”
Manufacturing activity also improved, supported by strong output in Food, Beverages and Tobacco; Textile and Apparel; Plastic and Rubber Products; and Electrical and Electronics.
However, structural challenges persist, as sub-sectors such as Cement, Basic Metal, Iron and Steel, and Wood Products slipped into contraction.
Surveyed firms cited unreliable electricity supply, insecurity, raw material shortages, rising input prices, and weakening sales as key constraints.
Non-Manufacturing, Services, and Trade sectors all lost momentum despite remaining in expansion.
In Trade, the BCM Index declined to 123.8 points from 132.9 points, as seasonal sales were offset by weak consumer purchasing power.
Services recorded its second consecutive slowdown, weighed down by weaker activity in Real Estate, Broadcasting, Telecommunications, and Professional Services. Persistent issues such as high operating costs, poor infrastructure, insecurity, and limited access to finance continue to constrain these sectors.
