Communication services sector rises in August; Paramount leads gains

In August 2026, Nigeria's business environment continued to evolve positively, with the composite Current Business Performance Index (CBPI) increasing to 112.7 points from 108.6 points in the previous month. This marked the highest level since February 2026, when the index was 117.2 points. The improvement was widespread, with Manufacturing leading the way. However, Non-Manufacturing slowed down slightly from its July pace.

Manufacturers still grappled with high operating costs due to unreliable power supply, raw material shortages, expensive rents, and limited access to financing. Despite these challenges, the Business Confidence Monitor's major components remained in expansion territory during the month. The NESG Future Business Expectation Index also rose, indicating optimism about the upcoming one to three months.

Earlier this month, Stanbic IBTC Bank Nigeria reported that Nigeria's private sector had shown its strongest improvement in business conditions in 29 months. Nairametrics also noted that overall economic activity expanded for the third consecutive month in August, with the Composite Purchasing Managers' Index (PMI) reaching 52.7 points.

This growth was driven by stronger performance in agriculture and services, while the industrial sector's growth slowed compared to the same period in 2025. The National Bureau of Statistics (NBS) reported that Nigeria's GDP grew by 4.43% year-on-year in real terms during the second quarter of 2026, up from 4.23% in the same quarter of 2025.