Nigeria’s business environment remained in expansion territory in February 2026 despite the harsh economic climate in the country. This is contained in a report by the NESG Business Confidence Monitor (BCM) for February 2026.
The report released on Wednesday said though businesses continued to face challenges, including limited financing, irregular electricity supply, rising rental and property costs, and insecurity, the business performance index (BPI) rose to a record high of 117.2 points from 105.8 and 111.5 points in January 2026 and February 2025, respectively, signalling improved business conditions.
It also noted that in February 2026, the cost of doing business and input prices eased to 65.2 points and 84.3 points, respectively.
“This combination of moderated cost pressures and strengthening consumer demand supported overall business activity”, the report said, adding that while the investment sub-index remained in contraction, it rose relative to the previous month, indicating a gradual recovery.
The sectoral breakdown indicates improved performance across all five sectors. The report shows that business activities expanded significantly across non-manufacturing, which rose to 128.9 points from 115.3, manufacturing which also advanced to 121.1 points from 115.8 and services, 109.2 points from 102.1.
Trade also rose from 92.7 points to 108.7 points, while agriculture which rose to 104.8 points from 99.5 moved into the expansionary region in February 2026.
The report said the BCM sub-indices including general business situation, production, demand conditions, investment, financial conditions, access to credit, cash flow, and employment, remained in the expansion zone, recording notable improvements compared with January 2026.
Notably, it said, the export, supply order, and trade stockpiling sub-indices also moved into expansionary territory in February 2026.
Nigeria’s business environment started on a positive note in 2026. The country’s GDP growth is projected to hit between 3.4 per cent and 4.2 per cent, driven by non-oil sector expansion, with services, financial intermediation, telecommunications, trade, and the creative economy projected to lead.
Inflation has also moderated, falling from 15.15 per cent in December 2025 to 15.10 per cent in January 2016, with food inflation hitting a single digit of 8.89 per cent in January, compared to 29.63 per cent in January 2025.
This has contributed to improved consumer sentiment and reduced price volatility.
However there is a palpable fear that the crisis in Iran could reverse the gains already made as fuel prices have started rising, a precursor of high inflation.