Nigeria’s enterprise exercise expanded for the twelfth consecutive month in December 2025, though the tempo of development slowed amid rising prices and softer client demand.
That is in line with the newest NESG–Stanbic IBTC Enterprise Confidence Monitor (BCM) titled “Rising Uncertainty Dampens Nigeria’s Present Enterprise Circumstances”, launched on Monday.
Whereas general enterprise situations remained firmly in expansionary territory, the report reveals that structural bottlenecks, price pressures, and weakening demand are starting to mood confidence amongst companies.
What the report is saying
In line with the report, the Present Enterprise Efficiency Index edged right down to 112.0 factors in December 2025 from 113.3 factors in November, however remained 11.2 factors larger than its December 2024 stage.
“This broad-based moderation factors to a extra cautious enterprise stance and subdued client demand,” the report famous.
All 5 main sectors—Agriculture, Manufacturing, Commerce, Non-Manufacturing, and Companies—remained in growth throughout the month, though three skilled slower development in contrast with November, the report famous.
Agriculture posted the strongest efficiency, with its BCM index climbing 9.6 factors to 112.9, pushed by heightened seasonal demand. Manufacturing additionally improved modestly to 117.9 factors, whereas Commerce (123.8), Non-Manufacturing (110.2), and Companies (104.3) all recorded slower development.
Key sub-indices—manufacturing, monetary situations, provide orders, credit score entry, and money circulation—reasonably declined, reflecting rising enterprise warning, whereas the price of doing enterprise elevated to 61.6 factors from 54.3 in November, highlighting persistent price pressures.
Sectoral traits and underlying pressures
The report attributed Agriculture’s rebound to stronger exercise in Crop Manufacturing, Livestock, and Agro-Allied sub-sectors, fueled by festive-season demand.
Livestock and Agro-Allied actions exited contraction territory, recording 105.2 factors and 108.2 factors, respectively.
In line with the report, “Mixed with good climate and improved harvests, improved entry to inputs, development in agro‑processing, supportive macroeconomic situations, and elevated mechanisation, strengthened general enterprise efficiency within the sector.”
Manufacturing exercise additionally improved, supported by sturdy output in Meals, Drinks and Tobacco; Textile and Attire; Plastic and Rubber Merchandise; and Electrical and Electronics.
Nevertheless, structural challenges persist, as sub-sectors comparable to Cement, Primary Steel, Iron and Metal, and Wooden Merchandise slipped into contraction.
Surveyed companies cited unreliable electrical energy provide, insecurity, uncooked materials shortages, rising enter costs, and weakening gross sales as key constraints.
Non-Manufacturing, Companies, and Commerce sectors all misplaced momentum regardless of remaining in growth.
In Commerce, the BCM Index declined to 123.8 factors from 132.9 factors, as seasonal gross sales had been offset by weak client buying energy.
Companies recorded its second consecutive slowdown, weighed down by weaker exercise in Actual Property, Broadcasting, Telecommunications, and Skilled Companies. Persistent points comparable to excessive working prices, poor infrastructure, insecurity, and restricted entry to finance proceed to constrain these sectors.
What this implies
The December 2025 BCM knowledge means that Nigeria’s financial system stays resilient however more and more cautious.
Whereas growth has been sustained for a full 12 months, rising prices, subdued client demand, and long-standing structural challenges are limiting the tempo of development throughout most sectors.
Though the Future Enterprise Expectation Index dipped barely to 132.6 factors, it remained above its December 2024 stage, indicating that companies are nonetheless optimistic about gradual enchancment.
Nevertheless, the moderation displays uncertainty round coverage reforms, working situations, and broader political and financial dangers.
Total, the info factors to an financial system that’s increasing, however one that can require focused reforms, price containment, and structural enhancements to maintain momentum and unlock stronger, extra inclusive development going into 2026.
What you must know
The Central Bank of Nigeria (CBN) reported that Nigeria’s non-public sector expanded at its quickest tempo in 2025 in December, with the Composite Buying Managers’ Index (PMI) rising to 57.6 factors.
The December PMI knowledge factors to strengthening enterprise confidence and sustained financial restoration throughout Nigeria’s key productive sectors.
In its November 2025 PMI report, Stanbic IBTC Bank Nigeria mentioned enter price inflation in Nigeria’s non-public sector eased to its weakest charge in nearly 5 years.
Be First to Comment