Nigeria's business performance index hits 112.7 in August, highest since February 2026

Nigeria's business environment expanded further in August 2026, with the composite Current Business Performance Index (CBPI) rising to 112.7 points from 108.6 points in July. The Nigerian Economic Summit Group (NESG) released the figures on Tuesday.

The August reading was higher than the 107.3 points recorded in the corresponding month of 2025. It also represented the highest level since February 2026, when the index stood at 117.2 points, following 105.8 points in January.

What the NESG report says

NESG said major components of the Business Confidence Monitor remained in expansion territory during the month. General business conditions, demand, exports, financial results, access to credit, cash flow and employment all recorded stronger performances than in July.

Production, operating profit and supply orders also remained in expansion, although they softened slightly. Investment remained in contraction but improved from the previous month. The trade stockpiling index surged as businesses accumulated inventories ahead of back-to-school shopping amid firm consumer demand.

Despite the improvement in overall business activity, cost pressures remained elevated. The Cost of Doing Business and Prices sub-indices stood at 56.7 and 58.7 points respectively, both below the 100-point neutral threshold.

Sectoral performance

Manufacturing recorded the strongest sectoral performance in August, with its CBPI climbing to 120.4 points from 110.5 points in July and 106.2 points a year earlier. The improvement was broad-based, led by Food, Beverage & Tobacco and Chemical & Pharmaceutical Products. Manufacturers continued to face high operating costs due to unreliable power supply, raw material shortages, expensive rents and limited access to financing.

Agriculture's CBPI edged down to 110.5 points in August from 110.8 points in July but remained well above the 95.6 points recorded a year earlier. Livestock and Fishing recorded stronger activity, supported by improved output conditions, while Crop Production remained at an elevated level. Agro-Allied activity eased slightly but stayed in expansion. Forestry was the weakest subsector, falling to the 100-point neutral level.

Non-Manufacturing recorded a weaker performance, with its index falling to 109.7 points from 116.6 points in July, although it remained close to the 116.2 points recorded in August 2025. Services extended its recovery, with its CBPI rising to 112.4 points in August from 108.3 points in July and 103.7 points a year earlier.

Broadcasting, Real Estate, and Professional, Scientific & Technical Services all recorded stronger expansion. Telecoms & Information Services also returned to expansion after contracting in July, supported by improved demand. Financial Institutions remained firmly in expansion despite easing from July, while Other Services stayed around the 100-point threshold.

The NESG Future Business Expectation Index, which measures business expectations over the next one to three months, rose to 129.3 points in August from 128.3 points in July.

Other confidence readings

Stanbic IBTC Bank Nigeria, in its Purchasing Managers' Index report, noted that Nigeria's private sector recorded its strongest improvement in business conditions in 29 months in August 2026. Stanbic IBTC said the PMI readings so far in the third quarter point to stronger economic activity and could support 4.1% GDP growth in 2026.

The bank expects the non-oil sector to expand by 4.11% in 2026, up from 3.71% in 2025, while oil-sector growth is projected to slow to 3.45% from 8.50%. Also, Nairametrics reported that Nigeria's overall economic activity expanded for the third consecutive month in August 2026, with the Composite PMI rising to 52.7 points from 51.1 points in July.

Nigeria's Gross Domestic Product grew by 4.43% year-on-year in real terms in the second quarter of 2026, up from 4.23% recorded in the corresponding quarter of 2025, according to the National Bureau of Statistics. The latest growth rate represents a 0.20 percentage-point improvement from a year earlier. The performance was supported by stronger growth in agriculture and services, while growth in the industrial sector slowed significantly compared with the same period in 2025.

For Nigerian businesses, the latest index points to a broad-based pickup in activity, but elevated operating costs remain a clear drag. The NESG's cost and price sub-indices staying below neutral suggests that many firms are still struggling to pass on expenses to consumers, a trend that could weigh on margins and investment in the months ahead.