NESG Report Highlights Constraints on Nigeria's Business Environment in March 2026
The Nigerian Economic Summit Group (NESG) has released a report indicating a significant weakening of business activities in March 2026, primarily attributed to limited access to finance and frequent power outages. According to the NESG's Business Confidence Monitor (BCM) report for March 2026, these factors contributed to a decline in the Business Performance Index, which eased to 101.2 points from 117.2 points in February 2026 and 106.6 points in March 2025.
Key Findings from the Business Confidence Monitor
The BCM, a survey-based report that gauges current business sentiment and short-term economic expectations in Nigeria, revealed that while the business environment remained in the expansionary zone in March 2026, it showed weaker performance compared to the previous month. This downturn was largely driven by contractions in the Agriculture and Non-Manufacturing sectors during the period.
Persistent constraints cited in the report include:
- Limited access to finance
- Frequent power outages
- Insecurity issues
- High rental costs
These challenges have collectively hampered economic activities, reflecting broader systemic issues affecting Nigeria's business landscape.
Sectoral Performance Breakdown
A detailed analysis of the figures shows uneven performance across five key sectors in March 2026:
- Manufacturing: Slowed from 121.1 to 103.4 points
- Trade: Declined from 108.7 to 103.8 points
- Services: Dropped from 109.2 to 104.7 points
- Non-Manufacturing: Moved into contraction, falling from 128.9 to 98.4 points
- Agriculture: Entered contraction, decreasing from 104.8 to 91.1 points
This sectoral data underscores the widespread impact of the identified constraints, with Agriculture and Non-Manufacturing particularly hard-hit.
Sub-Indices and Future Outlook
Key BCM sub-indices, such as general business situation, production, demand conditions, financial results, access to credit, cash flow, and employment, remained in expansion territory. However, all except trade stockpiling showed weaker outcomes compared to February 2026. In contrast, sub-indices for export, operating profit, and supply orders slipped into contraction during March 2026.
The future business expectations Index stood at 128.0 points, down from 135.4 points in February 2026, indicating cautious optimism about short-term business conditions. Trade and Manufacturing sectors recorded the strongest levels of optimism, while other sectors showed relatively weaker outlooks.
The report notes that this cautious outlook is partly due to emerging energy-related cost pressures linked to rising geopolitical tensions in the Gulf region, adding another layer of uncertainty to Nigeria's economic prospects.
Despite a slight easing in the cost of doing business, input costs remained elevated during the month, further straining business operations. The NESG's findings highlight the urgent need for interventions to address infrastructure deficits and improve financial accessibility to bolster Nigeria's economic resilience.
