Business Confidence Surges in April as Trade, Non-manufacturin...

Samuel Mobolaji

Business performance across Nigeria recorded a notable upswing in April 2025, with the Trade and Non-manufacturing sectors leading the growth trajectory, according to the latest NESG-Stanbic IBTC Business

Confidence Monitor (BCM) report.

The report showed that the current business index rose to 12.29 in April, up from 6.58 recorded in March 2025—reflecting improved business conditions and increased activity across various sectors. Trade posted the strongest growth at 25.12 per cent, a significant jump from 0.51 per cent in March. This was largely attributed to heightened consumer spending during the festive period, especially on food, clothing, and household goods.

Non-manufacturing followed with a 23.59 per cent increase, while Manufacturing grew by 8.78 per cent. The Agriculture and Services sectors posted 7.02 per cent and 6.54 per cent growth, respectively. All sectors recorded improved performances compared to March, reinforcing growing confidence in the Nigerian business environment.

Despite the generally positive outlook, the report highlighted several structural issues that continue to hinder broader expansion. These include persistent power supply shortages, ranked as the most pressing challenge—followed by high commercial lease and rental costs, limited access to finance, unclear economic policies, and constrained foreign exchange availability.

“High lease and rental costs remained a significant barrier for the second consecutive month, disrupting operations for many businesses,” the report stated. “Access to finance also continued to be a major limitation on business expansion.”

According to Stanbic IBTC, the April results represent the highest level of business optimism recorded since the BCM survey began seven months ago. The firm noted a widespread recovery across all monitored sectors, with Agriculture rebounding into positive territory following March’s contraction.

“The improvement in Agriculture reflects strong off-season harvests in Northern Nigeria, which boosted crop production and agro-allied activity,” the bank said.

Looking ahead, businesses expressed cautious optimism about the business environment over the next one to three months, with the Trade sector showing the highest level of near-term confidence.

Stanbic IBTC noted that while Q2 2025 has begun on a positive note, the pace of expansion may be slightly slower than the momentum recorded in Q1.