Nigeria's business activity expands in August 2026 despite persistent cost pressures
Nigeria's composite Business Performance Index rose to 112.7 points in August 2026 from 108.6 in July, reaching its highest level since February 2026 (117.2 points), according to NESG. Manufacturing drove the expansion with CBPI jumping to 120.4 points (up from 110.5 in July), particularly in Food, Beverage & Tobacco and Chemical & Pharmaceutical Products sectors.
While overall business conditions, demand, exports, financial results, access to credit, cash flow and employment improved, cost pressures remained severe. The Cost of Doing Business index stood at 56.7 points and Prices at 58.7 - both well below the 50-point threshold indicating contraction in these areas. Manufacturers continued citing unreliable power supply, raw material shortages, expensive rents and limited financing as key challenges.
Non-Manufacturing slowed to 109.7 points from 116.6 in July, though Services extended recovery to 112.4 points. Investment remained in contraction but showed improvement, while businesses built inventories ahead of back-to-school shopping. Looking ahead, the Future Business Expectation Index rose to 129.3 points from 128.3 in July.
With Stanbic IBTC projecting 4.1% GDP growth for 2026 supported by stronger non-oil sector expansion (4.11% vs 3.71% in 2025), will you increase business investment now given improving demand conditions, or delay decisions until operating cost pressures show sustained relief?