NESG Business Confidence Monitor For January 2026

In January 2026, Nigeria’s business environment remained in the expansion territory, although the pace of business
growth slowed- NESG Business Confidence Monitor for January 2026.

The NESG Business Confidence Monitor (BCM) Current Business Performance Index fell to 105.8
points – its lowest level in the last six months – from 112.0 points in December 2025. However, the index edged up
slightly from 105.7 points in January 2025.

The sectoral breakdown indicates that only the Non-manufacturing sector maintained an expansionary trajectory. Business activity slowed across most sectors. Manufacturing (115.8 points from 117.9) and Services (102.1 points from 104.3) remained in expansion territory but at weaker levels, while Agriculture (99.5 points from 112.9) and Trade (92.7 points from 123.8) slipped into the contraction region Key BCM sub-indices – including the general business situation, production, demand conditions, investment, financial conditions, supply orders, trade stockpiling, access to credit, and cash flow- all declined relative to December 2025.

This reflects the typical post-festive moderation of business activities amid weak consumer demand. During
the month, the cost of doing business surged to 90.5 points from 54.7 points in December 2025. Similarly, input prices rose sharply to 96.9 points in January 2026, up from 68.9 points in the previous month.

These elevated cost pressures are primarily driven by a “perfect storm” of new tax reforms, fuel price adjustments,
and the lagged effect of existing inflationary pressures, which negatively affected business activities in the period
under review.

Moreover, key challenges faced by businesses include limited access to finance, irregular power supply, and rising commercial property costs, which dampened investment and deteriorated business
performance across the sector.

Costs Up, Confidence Down: Stalling Growth Dominates Nigeria’s Business Environment