Corporate confidence in Nigeria’s business environment rises—NESG

Nigerian Economic Summit Group has said that corporate executive confidence in the Nigeria business environment has risen has performance in business activities recorded improvement in several sectors.

In its report it said “In May 2026, Nigeria’s business environment improved, albeit recording fragile expansion. The NESG Business Confidence Monitor (BCM) Current Business Performance Index rose to 104.6 points in the month from 102.1 points in April 2026.

“However, the index reading represents a downturn from 109.8 points recorded in May 2025.

Further breakdown indicates broadly positive performance across sectors in May 2026. Manufacturing moved into the expansion territory (114.1 points from 98.7 in April 2026).

“Similarly, the index reading rose for Services (103.5 points from 101.5) and Trade (105.5 points from 102.7). However, business activity slipped into the contraction region in Manufacturing (99.4 points from 101.6) and Agriculture (97.5 points from 103.2) during the month.

“Key BCM sub-indices, including general business situation, production, demand conditions, operating profit, financial results, supply order, access to credit, cash flow, and employment, remained in the expansion territory, even though only a few performed relatively better than in April 2026.

“Trade stockpiling fell into contraction, with sub-indices including investment and
export remaining in the contraction territory.

“The NESG BCM Index for the Agriculture sector fell into contraction at 97.5 points in May 2026 from 103.2 points in the previous month. It also represents a steeper contraction compared with its level in May 2025 (98.2 points).

“Performance was broadly negative across the subsectors during the month. Business activity contracted in Crop Production and Forestry.

“Similarly, Agro-Allied remained in the contraction territory. However, Livestock maintained a stronger expansion level relative to April 2026, while Fishing held steady at the neutral 100-point mark.

“The subdued business performance in the sector could be attributed to protracted challenges, including widespread insecurity, energy shortages, and infrastructural challenges, which elevated the overall cost of doing business and constrained new investments during the month.

“Business activity in the Manufacturing sector moved into the expansion territory in May 2026, with the NESG BCM Index rising significantly to 114.1 points from 98.7 in April 2026.

“The index, however, represents a marginal decline from its level in May 2025 (114.4 points).

“Nonetheless, the strong business expansion was largely driven by key subsectors, including Food, Beverage & Tobacco, Textile, Apparel & Footwear, Pulp, Paper & Paper Products, and Basic Metal, Iron & Steel, with almost all posting stronger performance than in April 2026.

“Conversely, Cement, Chemical & Pharmaceutical Products, Plastic & Rubber Products, Wood & Wood Products, and Non-Metallic Products largely contracted during the month.

“The remaining three (3) subsectors held steady around the neutral 100-point threshold. The sector benefited from strong consumer demand during the festive period.

“However, many industry players faced key constraints, including limited access to credit, an irregular power supply, a shortage of raw materials, and inadequate infrastructure, resulting in elevated input prices, a high cost of doing business, and limited new investment commitments during the month”.