Business Activity Weakens Despite Remaining in Expansion Zone — NESG

Business activities in Nigeria slowed in March 2026 despite remaining in the expansion territory, according to the latest Business Confidence Monitor (BCM) released by the Nigerian Economic Summit Group (NESG).

The report reiterated during an Interactive Media Session organised by the Group on Friday, April 10, showed that the Current Business Performance Index declined to 101.2 points in March 2026, down from 117.2 points in February, indicating weaker performance across several sectors of the economy.

According to the NESG, although the index remained above the 100-point threshold that signals expansion, the drop reflected persistent constraints facing businesses across the country.

“The weak performance reflects persistent constraints, including limited access to finance, frequent power outages, insecurity, and high rental costs,” the report noted.

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A breakdown of the data showed that Manufacturing, Trade and Services sectors continued to expand but recorded slower growth during the period.

Manufacturing activity, for instance, recorded an index reading of 103.4 points, down from 121.1 points in February, reflecting weaker output across several subsectors.

Similarly, the Services sector slowed to 104.7 points, compared with 109.2 points in the previous month, while Trade posted 103.8 points, also reflecting weaker performance.

The report noted that several business indicators such as production, demand conditions, employment and financial results remained in expansion territory, though at weaker levels.

However, export performance, operating profit and supply orders slipped into contraction during the month.

Commenting on the economic outlook, Chief Economist and Director of Research and Development at NESG, Mr. Olusegun Omisakin, urged policymakers to manage fiscal expectations realistically.

“Most developing countries are broke. We see budget as huge as something. No. Although budget should be impactful we should also moderate our budget as to how it can drive the economy,” Omisakin said during the interactive media session on Friday, April 10.

He added that fiscal planning must reflect the country’s economic realities.

“Whether we improve on our taxing system or not, we need to have a moderated expectation as to what we have and where we are going to. We look at the potential in formal and informal sector,” he said.