NESG: Power shortages, credit squeeze slow Nigeria’s business activity in October

Nigeria’s company activity broadened at a slower speed in October 2026, with the composite Current Business Performance Index being up to 115.4 points from 117.8 points in September, as companies continued to face power supply issues, restricted access to credit and insufficient facilities.

The Nigerian Economic Summit Group (NESG) revealed this in its October 2026 Business Confidence Monitor (BCM), keeping in mind that the current reading stayed above the 100-point limit separating growth from contraction.

Activity slowed month-on-month, the index was greater than the 111.3 points tape-recorded in October 2025.

Trade and Services were the only sectors that carried out much better than in September, while the other 3 sectors taped slower development.

Power and credit constrain organization development

The NESG report revealed that the majority of crucial company signs stayed in growth area in October, consisting of production, need, financial investment, operating earnings, supply orders, capital and work. Many of these indications slowed compared with the previous month.

• The export sub-index moved into contraction, while the monetary outcomes index went back to growth area. The expense of operating and costs sub-indices stayed listed below the neutral 100-point mark at 45.2 and 65.5 points, respectively, showing that a net bulk of companies continued to report raised expenses and manufacturer rates.
• Both readings enhanced from their September levels, recommending that expense and cost pressures alleviated somewhat however stayed considerable.

The NESG recognized irregular electrical energy supply, restricted access to credit, insecurity, high rental expenses and insufficient facilities as significant restraints impacting companies. These obstacles continued to raise operating expense throughout numerous sectors.

Trade and Services record more powerful activity

Trade taped the greatest organization efficiency in October, with its Current Business Performance Index increasing to 136.1 points from 128.5 points in September and 115.4 points a year previously.

• Both wholesale and retail trade stayed in growth area, although retail activity enhanced more highly throughout the month while wholesale trade broadened at a slower speed.
• Solutions likewise tape-recorded an enhancement, with its index increasing to 111.9 points from 107.7 points in September and 111.0 points in October 2025.
• Broadcasting, Financial Institutions, Professional, Scientific and Technical Services, and Real Estate stayed in growth. The very first 3 subsectors carried out much better than in September.
• Telecoms and Information Services moved into contraction after 2 successive months of growth, while Other Services stayed around the neutral limit.

Regardless of the enhancements, services in both sectors continued to deal with funding restraints, facilities spaces and undependable electrical power supply. Providers companies likewise reported regulative traffic jams, while traders pointed out high rental expenses and credit restraints.

Production and farming lose momentum

Production stayed in growth area, however its Current Business Performance Index decreased to 107.3 points in October from 108.4 points in September and 111.3 points a year previously.

• Efficiency differed throughout subsectors. Food, Beverage and Tobacco was the only one of the 3 biggest subsectors to stay in growth and enhance on its September efficiency. Fabric, Apparel and Footwear and Cement either moved into or stayed in contraction.
• Chemical and Pharmaceutical Products, Plastic and Rubber Products, and Wood and Wood Products went into growth area. Pulp, Paper and Paper Products moved into contraction, while Non-Metallic Products stayed in contraction.
• Makers continued to compete with power failures, lacks of basic materials, high rental expenses, minimal credit and facilities shortages.
• Farming likewise taped slower development, with its index being up to 113.8 points from 117.7 points in September, although it stayed above the 111.4 points taped in October 2025.
• Animals was the only broadening subsector to enhance on its previous month’s efficiency. Crop Production and Agro-Allied tape-recorded slower development, while Fishing stayed in contraction and Forestry remained around the neutral 100-point mark.

Insufficient funding, energy lacks, insecurity and facilities deficits stayed significant restrictions for farming services.

Non-Manufacturing activity likewise slowed, with its index decreasing to 107.7 points from 113.4 points in September and 115.0 points in October 2025. All subsectors other than Oil and Gas Services stayed in growth, while Other Non-Manufacturing markets were the only subsector to tape a minor enhancement from the previous month. Oil and Gas Services stayed in contraction for a 2nd successive month.

Companies stay positive about outlook

In spite of the slower speed of existing activity, the NESG Future Business Expectation Index increased to 130.8 points in October from 128.9 points in September, suggesting enhanced optimism about organization conditions over the next one to 3 months.

• Trade taped the greatest outlook at 194.0 points, followed by Manufacturing at 145.1 points and Non-Manufacturing at 135.0 points. Solutions and Agriculture taped lower optimism levels of 118.6 and 117.0 points, respectively.
• The NESG associated the better outlook partially to expectations of more powerful customer need throughout the joyful season and campaign-related costs ahead of the upcoming basic elections.
• Nairametrics previously reported that Nigeria’s company activity reached a record 117.8 points in September 2026, going beyond the previous high of 117.2 points taped in February.

Independently, the CBN reported that Nigeria’s economic sector sustained its growth for a 5th successive month in October, with the Composite Purchasing Managers’ Index increasing to 53.2 points from 53.0 points in September.