Nigerian Business Activity Hits Five-Month High -NESG
Nigerian private sector activity rebounded to its highest level in five months. The Nigerian Economic Summit Group reported that its Business Performance Index rose to 108.6 points in July 2026. A score above 100 signals expanding commercial activity. Local firms expanded output, boosted demand, and hired fresh workers despite mounting cost pressures. Solid earnings across key productive sectors drove the mid-year rebound. Hardened local businesses continue to survive difficult operational terrain.
Hydrocarbon production led the commercial turnaround across the private sector. Crude petroleum output and oilfield support services posted the strongest growth figures nationwide. The non-manufacturing index surged to 116.6 points on rising energy revenues. Recent petroleum sector deregulation unlocked fresh cash flow for local firms. Higher domestic crude output offset volatile international oil prices. Oil remains the primary driver of national commercial momentum.
Agricultural activity expanded sharply as early harvests reached regional markets. Timely rainfall boosted crop yields across key northern farming belts. The agricultural index climbed to 110.8 points in July from June levels. Favourable weather conditions lowered immediate food supply bottlenecks for urban traders. Farm production helped cushion broader rural families against rising living costs. Good weather offered temporary relief to agricultural supply chains.
Service providers returned to growth after a sharp contraction in June. Banking institutions, real estate firms, and technical consultancies generated strong monthly profits. The services index recovered to 108.3 points as client orders increased. Financial institutions expanded credit lines to top corporate borrowers. Telecommunication providers stumbled into contraction due to soaring energy tariffs. Higher operational costs continue to squeeze digital service providers.
Manufacturing firms maintained steady factory output despite crippling power outages. The industrial index rose to 110.5 points as cement and textile production grew. High interest rates continue to raise borrowing costs for factory owners. Small manufacturers struggle to secure affordable bank loans for daily inventory. High diesel costs force managers to scale back night shifts. Factory floors run on expensive self-generated power.
Underlying operational constraints still threaten long-term private sector investments. High property rents and transport bottlenecks consume corporate profit margins. Capital investment contracted further as business owners postponed expansion plans. Rising fuel prices keep domestic distribution costs extremely high. Nervous executives express cautious optimism about short-term economic prospects. Real growth requires deep structural energy reforms.