Limited entry to financing was essentially the most continuously cited constraint going through companies in Nigeria’s trade sector within the first half of 2026, in keeping with the Nigerian Economic Summit Group (NESG).
The discovering is contained within the NESG’s report, Trade Sector Report: From High Volume Commerce to Productive Distribution, which examines the sector’s working situations, enterprise efficiency and expectations.
The report exhibits that though merchants recorded optimistic money circulation and entry to credit score, profitability weakened and companies remained involved about the associated fee and availability of financing.
Financing tops trade sector constraints
The NESG’s H1 2026 constraint rankings positioned restricted entry to financing first, with a rating of 12, adopted by insufficient energy provide, unclear financial insurance policies and the price of business lease and rental property, which every scored 10.
- “The H1-2026 constraint rankings identify limited access to financing as the most frequently cited constraint, with a score of 12, followed by inadequate power supply, unclear economic policies, and the cost of commercial lease and rental property, each scoring 10,” NESG said.
The report famous that financing had moved from second place in 2024 to the main constraint in H1 2026, regardless of the Access to Credit Index remaining in expansionary territory at 112.0.
- Inadequate energy provide ranked second in H1 2026, with a rating of 10.
- Unclear financial insurance policies additionally scored 10, putting third.
- The value of economic lease and rental property ranked fourth, with a rating of 10.
- Availability of international trade ranked fifth, with a rating of 8, down from first place in H1 2025.
The NESG stated the continued prominence of financing constraints means that entry to some credit score doesn’t essentially imply companies can get hold of funding at appropriate prices, scales or reimbursement durations to assist growth.
It additionally described the declining prominence of international trade availability as an encouraging improvement for the sector.
Profit margins weaken regardless of money circulation
The report’s monetary indicators present that merchants maintained comparatively supportive liquidity situations in H1 2026, however profitability got here below strain.
The Access to Credit Index stood at 112.0, whereas the Cash Flow Index was 121.9, each indicating growth. However, the Operating Profit Index declined to 98.1 from 102.9 in H1 2025, transferring marginally into contraction.
- The NESG stated the distinction between optimistic money circulation and weaker profitability suggests that companies continued to generate transactions and keep liquidity, at the same time as their profit margins got here below strain.
- The report additionally highlighted a niche between present enterprise situations and expectations. The Future Business Expectations Index reached 156.1 in H1 2026, in contrast with the present Overall Index of 102.6.
Despite the robust outlook, the Future Investment Index remained impartial at 100. This means that merchants had been optimistic about future turnover and working situations, however the expectations had not but translated into a transparent expansionary funding outlook.
Nigeria’s merchandise trade expands
The report’s findings come amid development in Nigeria’s merchandise trade. The nation’s whole merchandise trade rose to N41.44 trillion in the second quarter of 2026, representing a 5.61% improve from the N39.24 trillion recorded within the corresponding quarter of 2025.
Nairametrics beforehand reported that the nation’s merchandise trade surplus surged to N7.55 trillion within the first quarter of 2026, up 340.88% from N1.71 trillion within the previous quarter.
The trade sector additionally contributed 17.89% to Nigeria’s Gross Domestic Product (GDP) within the first quarter of 2026.
The NESG’s findings point out that, regardless of development in trade exercise and optimistic money circulation situations, entry to appropriate financing, infrastructure challenges and strain on profitability stay essential issues for companies within the sector.
