In February 2025, Nigeria’s trade and manufacturing sectors enhanced business activities, with the Current Business Index rising to +11.50. However, ongoing challenges, such as high exchange rates and reduced access to credit, continue to pose risks to business growth. Investor sentiment remains cautious, reflected in a significant decline in business investment.
In February 2025, Nigeria’s trade and manufacturing sectors significantly bolstered business activities for the second month in a row, indicating favorable conditions within the economy. This observation is drawn from the NESG-Stanbic IBTC Business Confidence Monitor (BCM), a key survey-report conducted by the Nigerian Economic Summit Group (NESG) in collaboration with Stanbic IBTC.
The report highlights a rise in the Current Business Index to +11.50 from +5.69 in January, pointing to ongoing improvements across crucial sectors. Notably, the trade sector recorded the most substantial growth with an increase of +21.48, followed by manufacturing at +10.35, non-manufacturing at +10.21, services at +7.15, and agriculture at +2.69. However, the agricultural sector faced a slowdown, indicating persistent challenges.
Despite overall sector improvements, the report notes ongoing structural difficulties in Nigeria’s business climate. A notable concern remains the high exchange rate, which has adversely affected operational costs and consumer prices. The cost of doing business remained high at +47.18, slightly improved from January, yet it continues to strain many enterprises.
The analysis of Nigeria’s business activity in February 2025 reveals both positive growth in sectors like trade and manufacturing, alongside challenges such as high exchange rates and limited access to credit. While there was a marked increase in business activity, caution among investors led to a decline in business investment. The combination of structural issues and high operational costs presents ongoing concerns for future growth and profitability.
Original Source: businessday.ng
