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.
Read also
- Enugu SME Center empowers youths through construction skills TVET programme
- AfDB, Italy sign $6B deal, BoI secures $50M for SMEs
- Delta ALGON Chair hails Oborevwori’s empowerment drive
- FG to set up multi-level steering committee to boost industrial growth
- African SMEs forum champions Intra-African trade, ‘Made in Africa’
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.
Discover more from SMALL BUSINESS INSIGHTS
Subscribe to get the latest posts to your email.
