The NESG-Stanbic IBTC Business Confidence Monitor (BCM), a joint report by the Nigerian Economic Summit Group (NESG) and Stanbic IBTC, has highlighted a decline in business performance across Nigeria’s key sectors, particularly manufacturing and agriculture, in October 2024.
The report’s Current Business Index recorded a net balance of -23.24, reflecting a challenging economic environment. Sector-specific analyses revealed significant downturns: agriculture (-30.47), manufacturing (-28.72), non-manufacturing (-28.16), and trade (-23.45). The services sector also experienced slightly negative performance with a net balance of -6.19.
For manufacturing, a drop to -28.72 was linked to high interest rates, elevated inflation, and rising production costs, which constrained growth.
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The most affected sub-sectors included food, beverages, and tobacco (-39.45), wood and wood products (-52.05), and electrical and electronics (-67.68). However, non-metallic products (+5.83) reported a modest positive performance.
The agriculture sector’s index stood at -30.47, reflecting challenges such as insecurity, infrastructure deficits, and rising input costs caused by currency depreciation. Additionally, extended rainfall in Q4-2024 led to severe flooding, which damaged farmland and reduced crop yields and grazing areas.
The report underscores the urgent need for structural reforms to address the ongoing challenges and boost sectoral resilience in Nigeria’s economy.
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