Nigeria’s business activity expanded at a slower tempo in October 2026, with the composite Current Business Performance Index falling to 115.4 factors from 117.8 factors in September, as companies continued to grapple with energy provide issues, restricted entry to credit and insufficient infrastructure.
The Nigerian Economic Summit Group (NESG) disclosed this in its October 2026 Business Confidence Monitor (BCM), noting that the newest studying remained above the 100-point threshold separating enlargement from contraction.
Although activity slowed month-on-month, the index was increased than the 111.3 factors recorded in October 2025.
Trade and Services have been the one sectors that carried out higher than in September, whereas the opposite three sectors recorded slower development.
Power and credit constrain business development
The NESG report confirmed that the majority key business indicators remained in enlargement territory in October, together with manufacturing, demand, funding, working revenue, provide orders, money circulate and employment. However, most of those indicators slowed in contrast with the earlier month.
- The export sub-index moved into contraction, whereas the monetary outcomes index returned to enlargement territory. The value of doing business and costs sub-indices remained beneath the impartial 100-point mark at 45.2 and 65.5 factors, respectively, indicating {that a} web majority of companies continued to report elevated prices and producer costs.
- Both readings improved from their September ranges, suggesting that value and worth pressures eased barely however remained vital.
The NESG recognized irregular electrical energy provide, restricted entry to credit, insecurity, excessive rental prices and insufficient infrastructure as main constraints affecting companies. These challenges continued to lift working prices throughout a number of sectors.
Trade and Services file stronger activity
Trade recorded the strongest business efficiency in October, with its Current Business Performance Index rising to 136.1 factors from 128.5 factors in September and 115.4 factors a 12 months earlier.
- Both wholesale and retail commerce remained in enlargement territory, though retail activity improved extra strongly through the month whereas wholesale commerce expanded at a slower tempo.
- Services additionally recorded an enchancment, with its index rising to 111.9 factors from 107.7 factors in September and 111.0 factors in October 2025.
- Broadcasting, Financial Institutions, Professional, Scientific and Technical Services, and Real Estate remained in enlargement. The first three subsectors carried out higher than in September.
- However, Telecoms and Information Services moved into contraction after two consecutive months of enlargement, whereas Other Services remained across the impartial threshold.
Despite the enhancements, companies in each sectors continued to face financing constraints, infrastructure gaps and unreliable electrical energy provide. Services companies additionally reported regulatory bottlenecks, whereas merchants cited excessive rental prices and credit constraints.
Manufacturing and agriculture lose momentum
Manufacturing remained in enlargement territory, however its Current Business Performance Index declined to 107.3 factors in October from 108.4 factors in September and 111.3 factors a 12 months earlier.
- Performance assorted throughout subsectors. Food, Beverage and Tobacco was the one one of many three largest subsectors to stay in enlargement and enhance on its September efficiency. Textile, Apparel and Footwear and Cement both moved into or remained in contraction.
- Chemical and Pharmaceutical Products, Plastic and Rubber Products, and Wood and Wood Products entered enlargement territory. Meanwhile, Pulp, Paper and Paper Products moved into contraction, whereas Non-Metallic Products remained in contraction.
- Manufacturers continued to deal with energy outages, shortages of uncooked supplies, excessive rental prices, restricted credit and infrastructure deficiencies.
- Agriculture additionally recorded slower development, with its index falling to 113.8 factors from 117.7 factors in September, though it remained above the 111.4 factors recorded in October 2025.
- Livestock was the one increasing subsector to enhance on its earlier month’s efficiency. Crop Production and Agro-Allied recorded slower development, whereas Fishing remained in contraction and Forestry stayed across the impartial 100-point mark.
Inadequate financing, power shortages, insecurity and infrastructure deficits remained main constraints for agricultural companies.
Non-Manufacturing activity additionally slowed, with its index declining to 107.7 factors from 113.4 factors in September and 115.0 factors in October 2025. All subsectors besides Oil and Gas Services remained in enlargement, whereas Other Non-Manufacturing industries have been the one subsector to file a slight enchancment from the earlier month. Oil and Gas Services remained in contraction for a second consecutive month.
Businesses stay optimistic about outlook
Despite the slower tempo of present activity, the NESG Future Business Expectation Index rose to 130.8 factors in October from 128.9 factors in September, indicating improved optimism about business circumstances over the following one to 3 months.
Separately, the CBN reported that Nigeria’s non-public sector sustained its expansion for a fifth consecutive month in October, with the Composite Purchasing Managers’ Index rising to 53.2 factors from 53.0 factors in September.
