Amidst rising costs, financing constraints, Nigerian businesses Grew in July …. NESG

Nigerian business activities recorded a boost in July 2026 even amidst mounting cost pressures, with firms recording stronger performance across major sectors.

In the period, limited access to finance, energy shortages and infrastructure deficits continued to stifle business operations.

The latest Business Confidence Monitor (BCM) released by the Nigerian Economic Summit Group (NESG), which showed that the overall Current Business Performance Index rose to 108.6 points in July from 104.6 points in June.

The July 2026 score was also higher than 105.4 points recorded in July 2025.

The report attributed the improved business climate to broad-based expansion across the economy, led by the non-manufacturing sector, while noting that businesses remained burdened by limited access to finance, energy shortages, high rental costs, insecurity and poor infrastructure.

According to the NESG, most key business indicators, including production, demand conditions, operating profit, financial results, cash flow, employment and supply orders, remained in expansion territory during the month. However, investment continued to contract, while access to credit weakened slightly, underscoring the financing challenges confronting businesses.

The NESG report also noted that the cost of doing business and input costs increased compared with the previous month, keeping operating expenses elevated and discouraging fresh investments despite stronger business activity.

According to the report, sectoral performance showed the non-manufacturing sector leading growth with a Business Performance Index of 116.6 points, driven by stronger activity in crude petroleum, natural gas and oil and gas services.

The Manufacturing sector also remained in expansion, with its index rising to 110.5 points from 106.4 points in June.

Growth was supported mainly by the cement, textile, apparel and footwear, chemical and pharmaceutical industries, although several subsectors, including motor vehicle assembly, plastics and rubber products, contracted during the month.