By Ayomide Otitoju
Nigeria’s business environment saw improved performance in April 2025, as confidence among firms rose to its highest level in seven months, according to the NESG-Stanbic IBTC Business Confidence Monitor (BCM). The Current Business Index increased to +12.29 in April from +6.58 in March, driven by higher production, better cash flows, and increased demand.
The Trade and Non-Manufacturing sectors recorded the strongest growth, at +25.12 and +23.59 respectively, buoyed by consumer spending during seasonal festivities. Manufacturing (+8.78), Agriculture (+7.02), and Services (+6.54) also posted positive figures.
Despite the positive outlook, businesses continued to face challenges such as high operating costs, limited access to financing, power shortages, and expensive commercial rents. The cost of doing business rose to +51.79 in April from +48.44 in March.
Investment activity weakened, with a -15.00 index, while price levels declined by -16.62, suggesting persistent structural hurdles. Nevertheless, businesses remained cautiously optimistic about the short-term outlook, with the Trade sector showing the highest confidence.
The NESG and Stanbic IBTC cautioned that the BCM is not a replacement for official statistics but serves as a complementary indicator of business sentiment across sectors.
