Trade, manufacturing sector boost business activities in February

The trade and manufacturing sector of Africa’s fourth-largest economy boosted business activities for the second consecutive month in 2025, signalling favourable business conditions.

This was stated in the NESG-Stanbic IBTC Business Confidence Monitor (BCM), a flagship survey-based report of the Nigerian Economic Summit Group (NESG), supported by Stanbic IBTC.

According to the report, the Current Business Index rose to +11.50 from +5.69 in January, indicating sustained improvement in business activities across key sectors.

It said the trade sector led the gains with a robust increase of +21.48, followed by manufacturing (+10.35), non-manufacturing (+10.21), services (+7.15), and agriculture (+2.69).

While most sectors showed improvement compared to January, the agricultural sector experienced a slowdown, highlighting ongoing challenges within the industry.

Read also: Naira stability lowers business costs in January

“Structural difficulties in Nigeria’s business environment slightly eased, contributing to the observed improvements. However, a higher exchange rate remained a major concern, significantly impacting operational costs and consumer prices. The cost of doing business index remained elevated at +47.18, slightly lower than January’s figures, but still a burden on businesses.”

It added, “Access to credit deteriorated further (+24.84) due to unfavorable macroeconomic conditions and reduced commercial activity. The high cost of financing continued to constrain both current business performance and future growth expectations, limiting expansion opportunities for many enterprises.”

Despite some positive indicators, business investment declined sharply by -39.50, reflecting cautious sentiment among investors, NESG reported.

Additionally, declining price levels (-23.78) dampened business activity and demand, suggesting that consumer purchasing power remains under pressure.

It said several key challenges persisted in February, including limited foreign exchange availability, persistent power shortages, unclear economic policies, restricted access to finance, and high commercial lease costs. These factors collectively hindered business expansion and profitability.

The report added that one of the most pressing issues for businesses remains the elevated exchange rate of the local currency against major global currencies.

“Rising import costs continue to erode profitability and disrupt pricing strategies. Additionally, restricted access to financing remains a structural barrier, limiting business growth throughout the month,” it added.