After months of steady performance, a new threat is creeping into the boardrooms and shop floors of Nigerian businesses: the growing struggle to access finance.
According to the latest Business Confidence Monitor by the Nigeria Economic Summit Group, limited financing is now the single biggest concern for firms, overshadowing even persistent challenges like power supply and policy uncertainty.
Tight Credit Conditions
In July, the Nigeria Economic Summit Group (NESG), supported by Stanbic IBTC, identified poor access to financing as the most significant barrier to business growth in its latest Business Confidence Monitor report.
This growing concern stems largely from the Central Bank of Nigeria’s (CBN) ongoing monetary tightening.
In its effort to tame stubborn inflation and stabilise the naira, the CBN continued to raise interest rates aggressively.
Since early 2024, it increased the monetary policy rate from 18.75% to 27.5%.
Consequently, commercial banks adjusted their lending rates to between 33% and 35%, leaving businesses with fewer affordable credit options.
As a result, firms now face serious constraints in expanding their operations, increasing output, or investing in growth.
Economic Pressure Mounts
Although the naira now shows more stability than at any time in the recent past, this policy shift has come at a cost.
While inflation shows signs of easing, many companies struggle under the weight of high borrowing costs.
Furthermore, despite modest improvements in macroeconomic indicators, business performance has lost momentum.
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In July, the Business Performance Index fell to 105.4 points — a drop from 113.6 in June — as firms grappled with poor electricity supply, unclear economic direction, soaring commercial rents, and continued insecurity.
Cautious Optimism Ahead
Meanwhile, future outlook remains cautiously optimistic.
The Future Business Expectation Index edged down to 126.1 points in July 2025, signalling tempered expectations among businesses.
Nevertheless, many firms express hope.
They anticipate improvements in business conditions, stronger operating profits, higher production volumes, increased cash flow, better supply orders, and growing customer demand.
Among the sectors, manufacturing currently leads with the strongest confidence in future performance.
This optimism stems from easing inflation and greater currency stability.
In contrast, the agriculture sector shows the weakest outlook.
Insecurity, erratic weather, and outdated storage infrastructure continue to suppress its growth prospects.
In sum, while Nigerian businesses remain resilient, their ability to access finance will ultimately shape their trajectory — either fuelling recovery or compounding existing struggles.
