Nigerian business growth slows June 2026; services contract, outlook up
Nigerian business expansion continued in June 2026 but showed slower year‑on‑year growth, according to the NESG Business Confidence Monitor. The Current Business Performance Index held steady at 104.6 points, matching May’s reading but down sharply from 113.6 points in June 2025. Manufacturing, agriculture, non‑manufacturing and trade stayed in expansion, while the services sector slipped into contraction at 98.5 points.
The slowdown reflects persistent headwinds: high operating costs, limited credit access, unreliable electricity, infrastructure gaps and insecurity. Despite these pressures, the Future Business Expectation Index rose to 128.4 points in June from 127.0 in May, signalling stronger confidence in the next one to three months, partly helped by lower global crude oil prices averaging $87.7 per barrel.
The trade sector contributed 17.89% to Q1 2026 GDP and the economy grew 3.89% year‑on‑year in the same period. For businesses, this means expansion continues in goods‑related activities but services may face headwinds. Consider whether to adjust investment plans, strengthen cost management or explore opportunities in the more resilient agriculture, manufacturing and trade segments while watching for changes in power supply and financing costs.
Given mixed signals—expansion in goods sectors but contraction in services—will you adjust your business strategy to focus on goods, improve resilience in services, or wait for clearer signals?