Nigerian business confidence slips slightly in June 2026 amid rising costs
The Central Bank of Nigeria's Business Expectations Survey shows the Business Confidence Index (BCI) fell to 7.2 points in June 2026 from 7.9 points in May, reflecting weaker sentiment due to rising operational costs and macroeconomic pressures, though formal sector businesses remain optimistic. Mining and quarrying leads confidence at 42.9 points with 58.5% average capacity utilisation, while services dropped sharply to 2.9 points; agriculture improved to 12.2 points, industry eased to 10.9 points. Regionally, the North-East is strongest at 29.5 points, North-West 19.8 points, but sentiment is negative in the South-South (-7.9) and South-East (-9.0). Despite the dip, firms expect the BCI to rise to 17.6 points in July, 24.1 over the next three months, and 30.9 within six months, driven by economic diversification and fiscal reforms. However, energy shortages (23.4% of concerns) and geopolitical risks (16.5%) continue to weigh on operations, and the employment outlook remains negative at -8.3 points, indicating reluctance to hire despite anticipated stronger activity. Borrowing conditions stay tight, with private sector borrowing indices between 20 and 22 points, suggesting elevated lending rates may limit expansion. For readers, this signals ongoing cost pressures but also potential opportunities in mining and agriculture, while highlighting the need to monitor energy supply, financing costs, and regional disparities when making investment or career decisions.