Nigeria’s private sector recorded its strongest performance in five months in July, signalling renewed momentum across agriculture, manufacturing, services and other key sectors as businesses continued to expand despite a challenging operating environment.

The latest Business Confidence Monitor (BCM) released by the Nigerian Economic Summit Group (NESG) showed that the Current Business Performance Index climbed to 108.6 points in July 2026, up from 105.2 points in June. The latest reading represents the highest level recorded since February and indicates sustained improvement in overall business conditions.

An index reading above 100 points reflects expansion, showing that businesses experienced stronger production levels, improved demand, healthier cash flow, increased operating profits and better employment prospects during the month under review.

Although July’s performance remained below the 117.2 points recorded in February, the improvement highlights growing resilience among Nigerian businesses as companies adapt to economic pressures and pursue new growth opportunities.

According to NESG, the positive performance was broad-based, with all major sectors recording expansion during the period.

The agriculture sector posted a significant recovery, with its index rising to 110.8 points in July from 103.9 points in June. Manufacturing also strengthened, increasing to 110.5 points from 106.4 points, reflecting improved production activity and stronger operating conditions.

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The non-manufacturing sector emerged as the strongest performer, with its index jumping to 116.6 points from 106.8 points in June.

Meanwhile, the services sector returned to growth territory after a contraction in June, rising sharply to 108.3 points from 98.5 points. The latest figure also exceeded the 101.9 points recorded in July 2025, indicating improved year-on-year business activity.

Within the services space, financial institutions, real estate and professional, scientific and technical services maintained positive momentum, while broadcasting activities recovered from the contraction recorded in the previous month.

Trade activities also remained in expansion territory, with the sector’s index improving slightly to 102.8 points from 102 points in June.

NESG said the July performance was supported by stronger activity across several key business indicators, including production, demand conditions, supply orders, financial performance, access to credit, cash flow and employment.

The oil and gas value chain played a major role in driving growth during the period, with oil and gas services returning to expansion and crude petroleum and natural gas activities recording stronger performance compared with the previous month.

Despite the improved outlook, businesses continued to face structural challenges that could limit further growth, including high financing costs, unreliable electricity supply, elevated logistics expenses, insecurity and infrastructure gaps.

Manufacturers, in particular, continue to deal with rising production costs linked to energy expenses, diesel prices and expensive borrowing conditions.

The Central Bank of Nigeria (CBN) maintained the monetary policy rate at 26.5 per cent in July, keeping borrowing costs elevated for businesses, especially small and medium-sized enterprises that rely heavily on credit for operations and expansion.

However, the latest NESG report suggests that Nigerian businesses are maintaining expansion momentum despite these pressures, supported by stronger sectoral activity and improving demand conditions.

With growth recorded across major areas of the economy, the July performance points to increasing private-sector confidence and a gradual strengthening of business activity as companies navigate ongoing economic reforms and cost pressures.

Meiza Nigeria