Nigerian businesses show resilience, yet the cost of survival keeps rising.
The Nigerian Economic Summit Group–Stanbic IBTC Business Confidence Monitor for August paints a mixed picture: while optimism grows, firms still wrestle with structural and financial headwinds.
Costs And Credit Pressures
In August, the Current Business Index climbed to 107.3 points from 105.4 in July.
Stronger activity in technology, finance, manufacturing, energy, and logistics pushed the index upward.
Moreover, targeted investments and ongoing reforms lifted business sentiment.
However, persistent challenges dragged on performance.
Companies struggle with limited credit, unclear policies, unreliable electricity, soaring rents, and insecurity.
Furthermore, the report showed that key indicators—investment, exports, credit access, and prices—fell in August.
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At the same time, the cost of doing business rose again after easing slightly in July.
Even though inflation cooled for a fourth straight month to 21.88% in July, input costs kept climbing and squeezed margins.
Fragile But Firm Outlook
Meanwhile, high interest rates continue to choke growth.
Because the central bank maintains elevated rates, companies now choose short-term borrowing.
Data from FMDQ reveals that between June 2024 and June 2025, firms issued ₦1.8 trillion in debt maturing in less than a year, while they raised only ₦197.3 billion in longer-term notes.
Yet confidence in the future strengthens.
The Business Expectation Index jumped to 131.5 points in August from 126.1 in July.
Trade posted the brightest outlook, while agriculture lagged behind.
Still, analysts warn that optimism remains fragile as firms weigh reform-driven opportunities against stubborn macroeconomic headwinds.
