Nigeria’ business environment shows a weaker performance in March—NESG

Nigerian Economic Summit Group in its March 2026 Business Performance Index survey report said “In March 2026 NESG Business Confidence Monitor Current Business Performance Index eased to 101.2 points from 117.2 and 106.6 points in February 2026 and March 2025, respectively.

“Further breakdown indicates uneven performance across the five sectors in March 2026. Business activities slowed in Manufacturing 103.4 points from 121.1, Trade (103.8 points from 108.7, and Services 104.7 points from 109.2.

“However, index readings moved into the contraction region for Non-Manufacturing 98.4 points from 128.9 and Agriculture 91.1 points from 104.8 during the month.

“Key BCM sub-indices, including general business situation, production, demand conditions, financial results, access to credit, cash flow, and employment, remained in the expansion territory, even though all, except trade stockpiling, were associated with weaker outcomes= compared with February 2026. In contrast, export, operating profit, and supply orders subindices slipped into contraction in March 2026.

“While the overall cost of doing business eased slightly, input costs remained high. Notably, the investment sub-index recorded a deeper contraction in March 2026, highlighting reduced commitment of resources due to high risk perception among businesses. During the month, business performance was weakened by growth-inhibiting constraints, including limited financing, power supply deficit, elevated rental costs, input shortages, and insecurity.

“The NESG Business Confidence Monitor (BCM) Index for the Agriculture sector exited the expansion territory, dropping to 91.1 points in March 2026 from 104.8 points in the previous month.

“It also represents a deeper contraction compared with March 2025 (97.6 points). Performance was mixed across the five subsectors during the month. Business activities in two sub-sectors (Crop Production and Livestock) moved into the contraction region in March 2026.

“Forestry held steady at the neutral threshold of 100 points, whereas Agro-Allied and Fishing sustained their expansionary momentum, posting a stronger performance than in the previous month.

“During the month, industry players grappled with elevated insecurity,
constrained financing, power supply disruptions, and infrastructural challenges, which contributed to high input costs, production disruptions, and limited capacity of businesses to commit resources into new investment opportunities

“Business activity in the Manufacturing sector remained in expansion in March 2026, with the NESG Business Confidence Monitor (BCM) Index at 103.4 points. However, this marks a slowdown from 121.1 points in February 2026 and 108.3 points in March 2025, reflecting subdued performance across key sub-sectors.

“Of all sub-sectors, only Food, Beverage & Tobacco, Basic Metal, Iron & Steel, and Chemical & Pharmaceutical Products remained in the expansion region, but were associated with weaker performances. Business activity in five subsectors (Cement, Plastic & Rubber Products, Wood & Wood Products, Pulp, Paper & Paper Products, and Non-Metallic Products) slipped into contraction.

“In contrast, the index readings in other subsectors held steady around the 100-point threshold in March 2026. Business activity in the Non-manufacturing sector contracted in March 2026, with the NESG
BCM Index reading of 98.4 points, down from 128.9 and 119.2 points in February 2026 and March 2025, respectively.
The contraction reflects weaker performance across most subsectors.
Construction and Natural Gas remained in expansion, although both recorded softer activity compared to the previous month. In contrast, Oil & Gas Services slipped into contraction, while Crude Petroleum hovered around the neutral 100-point threshold.

“Business activity in the Services sector remained in expansion in March 2026, with the NESG Business Confidence Monitor (BCM) Index at 104.7 points. However, this reflects a slowdown from 109.2 points in February 2026 and 105.5 points in March 2025.

“Across sub-sectors, performance was broadly positive but weakened. Other Services settled at the neutral 100-point mark, while Broadcasting, Financial Institutions, Real Estate, and Professional, Scientific & Technical Services all remained in expansion, albeit with softer readings compared to the previous month Broad-based business expansion across the Services sector was largely supported by robust demand conditions and stronger financial conditions (improved earnings, profit margins, and cash flows).

“However, rising operating costs and weak investment momentum persisted, reflecting ongoing constraints such as energy shortages, regulatory bottlenecks, and infrastructure gaps”.