Report: Agriculture, Non-manufacturing Sectors Sustain Business Expansion as Manufacturing Contracts
Dike Onwuamaeze
Nigeria’s business environment marked its fourth consecutive month of expansion as improved performance in agriculture and non-manufacturing sectors lifted the Current Business Performance Index (CBPI) of the NESG Business Confidence Monitor (BCM) to 102.1 points, up from 101.2 points in March 2026.
The report stated that the “Future Business Expectations Index” signalled cautious optimism about short-term business conditions as the index stood at 128.6 points, marginally increasing from128.0 in March 2026.
The BCM noted that business activities during the month under review were largely constrained by limited access to finance, irregular power supply, persistent insecurity, and high rental costs during the month.
The Business Confidence Monitor (BCM) is a survey-based report that presents qualitative information on current business sentiment in the Nigerian economy and gauges expectations for short-term economic activity.
According to the report, “agriculture sector rebounded into expansion in April 2026, rising to 103.2 points from 91.1 points in the previous month, although it remained below the 107.0 points recorded in April 2025.
“Performance across the five agriculture’s subsectors was mixed in April 2026. Crop production and livestock recovered into expansion, while agro-allied activities slipped into contraction. Fishing remained in expansion but lost momentum relative to March 2026, whereas forestry held steady at the neutral 100-point threshold.”
The report noted that the agricultural sector benefited largely from improved demand conditions associated with festive activities during the month.
“However, industry players faced persistent challenges, including pervasive insecurity, erratic power supply, and infrastructural challenges, which elevated input costs and narrowed profit margins,” the report said.
But business activities in the manufacturing sector contracted in April 2026, with the BCM index at 98.7 points, down from 103.4 in March 2026 and 108.8 points in April 2025, reflecting subdued performance across key subsectors.
Sub-sectors in the manufacturing sector, including textile, cement, chemical and pharmaceutical products, as well as motor vehicles and assembly experienced contraction in April 2026.
Other subsectors that remained in contraction were wood and wood products, pulp, paper and paper products, as well as non-metallic products.
The subsectors that recorded expansion in the manufacturing sector in April were the food, beverage and tobacco as well as the basic metal, iron and steel while index readings in the remaining three sub-sectors held steady around the neutral 100-point mark during the month.
The report attributed the subdued performance across many manufacturing sub-sectors to growth inhibiting constraints like limited access to credit, power supply deficit, and persistent insecurity, which heightened the overall cost of doing business and constrained new investments among industry players during the month.
The report said that business activity in the non-manufacturing sector returned to expansion in April 2026, with the index rising to 101.6 points from 98.4 points in March 2026.
However, it remained well below the 123.6 points recorded in April 2025, signalling weaker underlying momentum.
Performance across the non-manufacturing sub-sectors was broadly positive but uneven as natural gas expanded while construction lost momentum relative to the previous month.
Similarly, crude petroleum and other non-manufacturing sub-sectors also recovered into expansion.
In contrast, oil and gas services remained in contraction, reflecting persistent operational and cost challenges within the segment.
“Nonetheless, industry players grappled with challenges, including elevated rental costs, incessant power outages, infrastructural bottlenecks, and insecurity, which largely constrained business activities during the month,” the report said.
The BCM reported that business activities in the services sector remained in the expansion territory in April 2026, with the NESG’s BCMI at 101.5 points even though the index reading eased from 104.7 points in March 2026 and 106.5 points in April 2025.
The BCM reported that in April 2026, business activities in the trade sector stayed in the expansion zone, with the BCMI at 102.7 points, dropping from 103.8 points in March 2026 and 125.1 points in April 2025.
The report stated that retail trade exhibited a weaker performance compared with the previous month, while wholesale trade exited the contraction territory.
“Nonetheless, sustained expansion in the trade sector could be partly attributed to improved consumer demand due to festivities during the month.
“Meanwhile, industry players faced enduring challenges, including limited access to finance, energy shortages, and elevated rental costs, which dragged business performance during the month,” the report said.