Nigeria’s economic recovery is encountering a new challenge just as business activity gathers momentum, with surging operating costs threatening to derail fresh investments and weaken corporate confidence despite broad-based expansion across key sectors of the economy.
The latest Business Confidence Monitor (BCM) by the Nigerian Economic Summit Group (NESG) shows that the Current Business Performance Index rose to 108.6 points in July, up from 104.6 points in June and 105.4 points in the corresponding period of 2025, indicating stronger economic expansion. The improvement was led by non-manufacturing industries, while every major sector, including services, recorded expansion during the month.
The report shows that while companies expanded production, improved profitability, and recorded stronger demand in July, many are holding back on new investments as rising energy costs, expensive financing, inadequate infrastructure, and insecurity continue to squeeze margins.
It reveals a growing disconnect between improving business performance and companies’ willingness to commit
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