By Jennete Ugo Anya
Nigeria’s business environment continued its steady improvement in October 2025, with the Business Confidence Index rising to 111.3 points, up from 107.9 in September.
The increase reflects growing optimism across the economy, according to the latest NESG-Stanbic IBTC Business Confidence Monitor (BCM).
The report highlights that improving perceptions of current business conditions are driving a more resilient economic outlook. Easing inflation and a relatively stable exchange rate are helping restore confidence among private-sector operators. Compared to the same period last year, when the index stood at 76.8 points, October’s reading represents a remarkable year-on-year recovery.
Sectoral Expansion Across the Economy
All five broad economic sectors recorded expansion in October. Manufacturing and Trade led the gains, with their indices rising to 111.3 and 115.4 points respectively. Agriculture followed closely at 111.4 points, driven by strong performances in crop production and agro-allied industries. Improved seed varieties, targeted government input support, and stable market conditions helped bolster confidence in the sector, despite challenges such as raw material shortages, animal disease outbreaks, and rising production costs.
The non-manufacturing sector rose to 115.0 points, while services maintained steady growth at 111.0 points. The services sector’s expansion was supported by favourable macroeconomic conditions, including improved FX stability and easing inflation. However, some sub-sectors, such as professional, scientific & technical services, recorded slower growth, indicating that recovery remains uneven in certain areas.
Manufacturing Rebounds Strongly
After a period of contraction, the manufacturing sector rebounded sharply, climbing from 102.5 points in September to 111.3 points in October. Sub-sectors like food, beverage & tobacco and cement led the turnaround. The report attributes the recovery to more stable power supply, better access to finance, improved foreign exchange stability, and enhanced navigation of regulatory challenges.
Implications for Nigeria’s Economy
The broad-based expansion across all major sectors signals a strengthening private sector and growing economic resilience. The report notes that sustained improvements in business confidence are tied to policy stability, stronger infrastructure, and greater access to credit.
Analysts say the October figures reinforce trends observed in other indicators, such as the Composite Purchasing Managers’ Index (PMI), which rose to 56.4 points in November from 55.4 in October, pointing to continued expansion in aggregate economic activity.
As Nigeria moves into the final months of 2025, the rise in business confidence suggests that private-sector operators are regaining faith in the economy. The broad-based growth across manufacturing, trade, agriculture, services, and non-manufacturing offers hope for a more balanced and sustained economic recovery.
