Nigeria’s business environment remained in expansion in June 2026, but growth slowed as businesses grappled with high operating costs, limited access to credit, poor infrastructure and insecurity, the Nigerian Economic Summit Group (NESG) has said.

The group’s June 2026 Business Confidence Monitor (BCM) showed that the Current Business Performance Index remained unchanged at 104.6 points, the same level as in May.

However, the figure was lower than the 113.6 points recorded in June 2025, indicating that although businesses continued to expand, the pace of growth had weakened over the past year.

The report showed that manufacturing, agriculture, non-manufacturing and trade remained in expansion territory during the month, while the services sector slipped into contraction.

According to the NESG, businesses sustained growth despite persistent operational challenges.

“The NESG Business Confidence Monitor (BCM) Current Business Performance Index was unchanged at 104.6 points relative to May 2026, but this marked a significant decline from 113.6 points in June 2025,” the report stated.

It noted that manufacturing and trade remained in expansion despite weaker performance than in the previous month, while agriculture and non-manufacturing returned to expansion. In contrast, the services sector recorded a contraction in June.

The report added that production, customer demand, operating profit, financial performance, supply orders, cash flow, employment and access to credit all remained in expansion. However, investment and exports stayed weak, while trade stockpiling contracted.

NESG said businesses continued to struggle with limited access to finance, unreliable electricity supply, rising rental costs and insecurity, even though the overall cost of doing business eased slightly during the period.

Across sectors, performance was mixed, with agriculture and non-manufacturing recording stronger growth, while manufacturing and services lost momentum.

Agriculture returned to expansion as its Business Confidence Index rose to 103.9 points from 97.5 points in May. The improvement was supported by early harvests and sustained rainfall, which boosted crop production, although livestock and forestry activities remained under pressure.

Manufacturing also remained in expansion with an index of 106.4 points, down from 114.1 points in May and 123.6 points recorded in June last year. While the textile, apparel and footwear segment improved, the food, beverage and tobacco, cement, plastic and rubber products, and basic metals segments recorded weaker performance.

Non-manufacturing rebounded to expansion with an index of 106.8 points, driven by stronger activities in construction and crude petroleum, although oil and gas services remained in contraction.

The services sector, however, contracted with an index of 98.5 points following weaker performance by financial institutions, telecommunications, real estate and broadcasting. The trade sector maintained expansion at 102.0 points, although wholesale activities slowed and retail trade contracted.

According to the report, high financing costs, erratic electricity supply, infrastructure gaps, insecurity and regulatory uncertainty continued to discourage investment, reduce profit margins and slow employment growth across the economy.

Despite these challenges, businesses remained optimistic about the near-term outlook.

The NESG said its Future Business Expectation Index rose to 128.4 points in June from 127.0 points in May, reflecting stronger confidence in business conditions over the next one to three months.

The report attributed the improved outlook partly to easing geopolitical tensions in the Middle East, which helped lower global crude oil prices.

It stated: “The improved outlook was partly driven by easing geopolitical tensions in the Middle East, which contributed to lower global crude oil prices, averaging $87.7 per barrel in June compared with $112 per barrel in May.”