Business is Rising in Nigeria as Manufacturing Picks Up in 2025

Nigeria’s business climate is showing strong signs of improvement in 2025, with manufacturers leading the charge. 

For the sixth month in a row, confidence among Nigerian businesses has continued to 

rise, a signal that the economy is gradually finding its footing after years of uncertainty.

The latest Business Confidence Monitor (BCM) report, released in July 2025 by the Nigerian Economic Summit Group (NESG) and Stanbic IBTC, shows that companies across sectors are feeling more positive. 

In June, the index measuring current business performance climbed to 113.6 points, a steady increase from May’s 109.8. This figure remains well above the 100-point benchmark that separates business growth from decline.

Even more encouraging is the index tracking expectations for the future. That number jumped to 134.5 in June, the highest so far this year, suggesting that many Nigerian businesses are not only doing better, they’re also hopeful about what lies ahead.

Manufacturing steps up

Leading the pack is Nigeria’s manufacturing sector, which has shown clear and consistent gains. 

The sector’s index rose from 114.4 in May to 123.6 in June, boosted by strong performance in areas such as textiles, cement, footwear, rubber, and wood products. Manufacturers have reported higher production volumes and better supply chain coordination, a welcome shift in a sector long plagued by instability.

But it hasn’t all been smooth sailing. Nigerian manufacturers continue to face major hurdles, from erratic power supply and inflation to rising fuel costs and difficulties sourcing raw materials. 

The cost of diesel remains high, and the naira’s ongoing depreciation has pushed up the cost of imported goods. Unstable policies, multiple taxes, and insecurity are also weighing on the industry’s potential.

In response to these pressures, the Manufacturers Association of Nigeria (MAN) is calling for support. Specifically, they’ve urged the Central Bank of Nigeria (CBN) to cut interest rates to ease inflation and help businesses access cheaper loans, a move they say could spark real growth in the sector. However, at its July meeting, the CBN opted to hold the interest rate steady at 27.5%.

Services sector sees mixed results

While the manufacturing sector is trending upward, Nigeria’s non-manufacturing businesses such as those in finance, retail, and services are experiencing a more uneven journey. 

The sector’s index remained positive at 120.7 in June, but that number marks its second monthly decline. 

Many service-based firms are feeling the pinch from high energy costs, poor infrastructure, and unpredictable forex rates, all of which are eroding profits and making operations more expensive.

Some sub-sectors, such as vehicle assembly, even recorded declines in June, though overall growth in other areas helped keep the sector in positive territory.

What you should know

The Business Confidence Monitor uses 100 as the baseline: scores above 100 indicate growth or optimism, while scores below 100 point to decline or pessimism. 

So far, Nigeria has remained safely in the optimistic zone thanks largely to its manufacturing sector.

Still, if the country wants to maintain this momentum, targeted support for industries especially through clearer policies, better power supply, and more accessible credit will be key.