Business Growth Slows In March On Rising Costs, Power Cuts – NESG

Nigeria’s business activity expanded modestly in March 2026, though growth slowed amid rising input costs and persistent power shortages, per the Nigerian Economic Summit Group’s (NESG) latest Business Confidence Monitor (BCM) report.
The Current Business Performance Index dropped to 101.2 points from 117.2 in February and 106.6 a year earlier, staying above the 100-point expansion benchmark but signaling reduced momentum across major sectors.
Businesses cited limited financing, power outages, insecurity, and high rents as key drags on operations.
Sectoral data showed mixed results. Manufacturing, trade, and services grew but at a slower pace than February—manufacturing at 103.4 points (down from 121.1), services at 104.7, and trade at 103.8.

Manufacturing subsectors like cement, plastics, rubber, and wood products contracted due to raw material shortages, infrastructure issues, and credit constraints that inflated costs and margins.
Retail held firm in trade, but wholesale weakened from supply chain and financing woes. Non-manufacturing plunged to 98.4 points (from 128.9), hit by oil and gas services declines, while agriculture contracted further to 91.1 points amid insecurity, funding gaps, and infrastructure hurdles affecting crops and livestock.
Investment activity deepened in contraction as firms cut back amid macroeconomic risks, high input costs, energy deficits, and insecurity.

Business costs eased slightly to 59.7 per cent from 65.2 per cent, but elevated inputs still hurt profits. Sub-indices for exports, operating profits, and supply orders also contracted.
Business Expectations Index dipped to 128.0 points from 135.4, reflecting tempered optimism—strongest in trade and manufacturing, weaker in agriculture and services.
NESG highlighted global risks like Gulf geopolitical tensions driving up oil prices and energy costs.