Nigeria’s Business Performance Index Climbs to 107.3 as Firms Face Financing, Policy Hurdles

Nigeria’s Business Performance Index (BPI) rose to 107.3 points in August 2025, reflecting a modest improvement in business activity compared to the previous month. However, the uptick comes against a backdrop of persistent challenges, with firms across sectors still struggling to access financing, cope with rising costs, and navigate policy uncertainty. According to the latest data from Nairametrics’ Business Confidence Monitor, the improvement was largely driven by gains in trade, manufacturing, services, and non-manufacturing sectors. The non-manufacturing industry led the recovery with a reading of 116.2 points, while trade stood at 114.1, manufacturing at 106.2, and services at 103.7. Despite these advances, the agricultural sector recorded a downturn, slipping into contraction at 95.6 points. Analysts attributed the decline to setbacks in crop production and forestry, worsened by erratic rainfall, insecurity in farming regions, and delays in planting seasons. Rising input costs, including poultry feed and fertilisers, also weighed heavily on farmers, squeezing profits and limiting reinvestment. Business operators identified a number of pressing concerns undermining growth. Restricted access to credit remains the most significant obstacle, with many firms unable to secure financing to expand operations. Other challenges highlighted include unreliable electricity supply, escalating lease and rental costs, insecurity, and what stakeholders described as “unclear and inconsistent government policies.” While the August figures point to cautious optimism in parts of the economy, experts have warned that the underlying vulnerabilities continue to limit Nigeria’s growth potential. They note that although trade and manufacturing are showing resilience, high operating costs and weak consumer demand could easily erode these gains in the coming months. Policy analysts have called on the federal government to prioritise interventions that will stabilise the business environment. Key recommendations include improving access to affordable financing, addressing infrastructural deficits, ensuring policy consistency, and strengthening security in vulnerable regions. The agricultural sector, in particular, is seen as requiring urgent attention, given its central role in employment and food security. As Nigeria navigates the remainder of 2025, the direction of its business performance will depend heavily on how quickly authorities can implement these measures. Without decisive action, the gains recorded in August risk being short-lived, leaving many firms vulnerable to the same structural hurdles that have long stifled growth.