In August 2025, companies in Nigeria sustained a constructive trajectory, with the index staying within the growth zone because the begin of the yr. The NESG–Stanbic IBTC Business Confidence Monitor reported a slight rise within the Current Business Index to 107.3 factors, up from 105.4 factors in July 2025. This restoration was pushed by stronger efficiency in know-how, finance, manufacturing, power, and logistics, supported by focused investments and ongoing reforms. However, these good points had been tempered by structural bottlenecks affecting operational effectivity and enterprise profitability. Apart from the contraction in Agriculture, the sectoral evaluation confirmed enhancements throughout industries and broader {economic} actions.
Trade posted the strongest rebound after the earlier month’s decline. Meanwhile, Manufacturing (106.2), Non-manufacturing (116.2), Trade (114.1), and Services (103.7) all superior in August in comparison with July 2025. Conversely, Agriculture slipped into contraction territory, recording 95.6 index factors. Key sub-indices of the BCM, together with funding, exports, entry to credit score, and costs, registered decrease values relative to July 2025. The value of doing enterprise additionally rose in August, reversing the marginal reduction of the earlier month. Additionally, enter costs continued to worsen through the interval. Major constraints limiting progress and efficiency in August 2025 had been restricted financing entry, unclear {economic} insurance policies, unreliable electrical energy provide, excessive lease and rental prices, and protracted insecurity.
Comment from Stanbic IBTC
Business situations in Nigeria improved in August relative to July as progress seen throughout the Manufacturing, Non-manufacturing, Services, and Trade sectors had been sufficient to neutralize the contraction witnessed by the Agricultural sector within the month. Within Agriculture, crop manufacturing recorded probably the most vital decline, possible seasonal in nature, as August is the lean season based mostly on Nigeria’s agricultural calendar, forward of the primary harvest season beginning in September. Hence, the Agricultural sector output could improve in September and October, possible resulting from greater output related to the harvest season.
Meanwhile, the Manufacturing sector rebounded in August after the contraction witnessed in July, supported by the Food, Beverage and Tobacco; Textile, Apparel and Footwear; Wood and Wood Products; and Pulp, Paper and Paper Products sub-sectors. Services (103.7 factors vs July: 101.9 factors) additionally remained inside the expansionary territory for the sixth consecutive month, supported by the continuing enchancment in FX liquidity situations, softer value pressures, and relative stability of the home foreign money.
Nigeria’s rebased financial system exhibits actual GDP rising by 3.13% y/y in Q1:25 – slower than the three.76% y/y revised progress in This fall:24 – and in addition the bottom since Q1:24 when the financial system grew by 2.27% y/y. At 78.6%, relative to 70.0% in This fall:24, providers contributed probably the most to GDP progress in Q1:25, however agriculture shrank to 0.5% in Q1:25, from 19.7% in This fall:24. Industries in Q1:25 contributed a powerful 20.9%, from 10.4% in This fall:24, according to our long-held view that industries ought to begin contributing extra to actual GDP progress from 2025 amid the structural shift launched into the sector by the operations of Dangote Refinery. Overall, the Nigerian financial system continues to be on observe to develop by 3.5% y/y in 2025 from 3.4% y/y progress seen in 2024 supported by softer inflation, enchancment in FX liquidity situations, and structural reforms.
