Lagos, Nigeria – Nigeria’s business environment remained in the expansionary zone in March 2026, but with significantly weaker momentum, according to the latest Business Confidence Monitor released by the Nigerian Economic Summit Group.
The Current Business Performance Index declined to 101.2 points in March from 117.2 points in February, staying above the 100-point threshold that indicates expansion but highlighting mounting pressures across key sectors.
Okay News reports that compared to the same period in 2025, the index remained slightly lower than the 106.6 points recorded in March last year, suggesting that while growth persists, the pace is weakening amid structural and macroeconomic challenges. Manufacturing declined to 103.4 points from 121.1, while Trade eased to 103.8 points from 108.7. Services recorded 104.7 points, maintaining expansion but at a slower pace.
Non-Manufacturing and Agriculture slipped into contraction at 98.4 points and 91.1 points respectively. In manufacturing, only sub-sectors such as food and beverages, metals, and pharmaceuticals sustained growth, while cement, plastics, and paper products contracted. The investment sub-index remained in contraction, signalling reduced willingness by businesses to commit capital due to rising risks and uncertainty.
Key indicators such as export activity, operating profits, and supply orders also slipped into contraction. The Future Business Expectation Index dropped to 128.0 points from 135.4 points, indicating cautious optimism for the next one to three months. Businesses faced persistent challenges including limited access to financing, erratic power supply, rising rental costs, input shortages, and insecurity.
This business confidence slowdown reflects growing concerns about weakening investment sentiment and future economic growth prospects. Sustained business confidence will depend on addressing structural constraints and improving policy consistency.
