Dike Onwuamaeze
The Business Confidence Monitor (BCM) report of the Nigerian Economic Summit Group (NESG) showed that manufacturing sector recorded the strongest business performance in August 2026.
The report stated that during the month under review, the Nigeria’s business environment recorded further expansion as the Current Business Performance Index (CBPI) stood at 112.7 points, up from 108.6 and 107.3 points in July 2026 and August 2025, respectively.
The report attributed this to sustained expansion across sectors, with manufacturing recording the strongest business performance.
It, however, stated that despite this expansion, many industry players have continued to face constraints during the month, especially inadequate power supply, limited access to financing, elevated rental costs, insecurity, and infrastructural challenges, which heightened cost pressures.
According to the BCM, business activity in manufacturing accelerated further in August 2026, with the CBPI for the sector rising to 120.4 points from 110.5 points in the previous month (July 2026).
It said: “The index reading also marks a significant improvement compared with 106.2 points recorded in August 2025. This reflects broad-based strength across subsectors, led by Food, Beverage & Tobacco and Chemical & Pharmaceutical Products, both of which recorded strong expansion.
“Textile, Apparel & Footwear remained in expansion, performing better than in July 2026, while cement held steady at an elevated level despite a marginal pullback. Notably, plastic and rubber products, pulp, paper and paper products, wood and wood products, and motor vehicles and assembly all moved into expansion territory during the month, having contracted in July.”
However, it said electrical and electronics slipped into contraction, while non-metallic products remained in contraction despite a marginal improvement.
In addition, the report said basic Mmtal, iron and steel eased slightly but held onto expansion.
“Moreover, many industry players faced growth-inhibiting constraints, including an inadequate power supply, a shortage of raw materials, high rental costs, and limited access to financing, which heightened cost pressures during the month,” the report said.
On the other hand, the CBPI for the agriculture sector declined marginally to 110.5 points from 110.8 points in the previous month but represented a substantial increase from 95.6 points it recorded in August 2025.
“This broadly resilient performance reflects positive expansion across most subsectors despite weaker activity in forestry. Livestock and fishing expanded further, performing better than in July 2026. Improved output conditions supported stronger activity in both subsectors. Crop Production held steady at an elevated level, while agro-allied eased slightly but remained in expansion. Conversely, forestry slipped to the neutral 100-point threshold.
“However, many players in the agricultural sector continued to face challenges, including limited access to financing, inadequate power supply, and infrastructure bottlenecks, which kept operating costs elevated during the month. In the same vein, business activity in the non-manufacturing sector eased in August 2026, with its CBPI declining to 109.7 points from 116.6 points in July 2026,” the report said.
The report added that the decline was largely attributable to a reversal in crude petroleum, which slipped into contraction after leading the sector’s expansion in July, alongside softer performance in oil and gas services.
It said, “However, business activity in the services extended its recovery in August 2026, with the sector’s CBPI rising to 112.4 points from 108.3 and 103.7 points in July 2026 and August 2025, respectively. Similarly, business activity in the trade sector strengthened considerably, with its CBPI rising to 112.0 points from 102.8 points in the previous month, although it eased from 114.1 points in August 2025.”