By Favour Pius
Nigeria’s business environment showed signs of recovery in April 2026, with the Business Confidence Index (BCI) rising to 102.1, reflecting improved sentiment among firms across key sectors of the economy.
The latest report by the Nigerian Economic Summit Group (NESG) indicates a return to expansionary territory, as the index crossed the 100-point threshold, signalling that more businesses are optimistic about operating conditions.
According to the NESG, the improvement was driven by gradual stabilisation in macroeconomic indicators, easing supply chain pressures and renewed optimism around ongoing economic reforms.
Analysts note that the uptick suggests businesses are beginning to adjust to policy changes, including foreign exchange reforms and fiscal adjustments, which had earlier created uncertainty in the operating environment.
A breakdown of the index showed stronger performance in sectors such as trade, manufacturing and services, supported by increased consumer demand and improved business activity during the period.
However, despite the positive outlook, firms continue to face significant headwinds, including high inflation, elevated operating costs, exchange rate volatility and infrastructure constraints.
“While confidence has improved, businesses remain cautious. The operating environment is still challenging, and sustaining this momentum will depend on policy consistency and macroeconomic stability,” an economist said.
The report also highlighted that access to finance and energy costs remain critical concerns for businesses, particularly small and medium-sized enterprises.
Stakeholders emphasised the need for sustained reforms to strengthen the business climate, including improved infrastructure, regulatory clarity and support for productive sectors.
The rise in the index is seen as a positive signal for investors, suggesting a gradual recovery in economic activity after periods of volatility.
Nonetheless, analysts warn that maintaining business confidence will require continued efforts by policymakers to address structural challenges and create a more predictable economic environment.
With the index now above the neutral mark, attention will shift to whether the upward trend can be sustained in the coming months amid ongoing economic adjustments.
