Nigeria’s business environment recorded its strongest performance in more than a year in February 2026, as the Business Confidence Monitor (BCM) compiled by the Nigerian Economic Summit Group (NESG) rose sharply to 117.2 points.
The latest figure represents a significant increase from 105.8 points recorded in January and is also higher than the 111.5 points posted in the same period last year, reflecting renewed optimism among businesses operating in the country.
According to the report released by the NESG on Wednesday, the improvement indicates better business conditions across major sectors of the economy, supported by easing cost pressures and stronger consumer demand. Analysts described the development as a positive signal for commercial activity and trade.
“This is the strongest performance in over a year, signalling improved business conditions,” the NESG said in its monthly report, noting that all five sectors tracked in the survey moved into expansionary territory at the same time for the first time in recent months.
A breakdown of the sectoral performance shows that the non-manufacturing sector recorded the strongest growth, rising to 128.9 points in February from 115.3 points in January. The manufacturing sector also improved, advancing to 121.1 points from 115.8 points recorded the previous month.
The services sector recorded a moderate but steady increase, climbing to 109.2 points from 102.1 points in January.
Trade, which had previously remained in contraction territory at 92.7 points in January, witnessed a strong rebound, rising to 108.7 points in February. The agriculture sector also crossed the expansion threshold, improving to 104.8 points from 99.5 points recorded in the previous month.
Under the BCM framework, the expansion benchmark is set at 100 points. Readings above this level indicate growth in business activity, while figures below the threshold signal contraction.
The February rebound was largely driven by a moderation in cost pressures, which have weighed heavily on businesses across the country over the past year.
Data from the report showed that the cost of doing business sub-index improved to 65.2 points. The index operates on an inverse scale, meaning lower readings reflect higher operating costs, while higher readings indicate easing pressures.
Similarly, input prices showed signs of moderation, with the index rising to 84.3 points, offering some relief to businesses that have struggled with rising operational expenses in recent months.
The NESG noted that the improved performance across sectors suggests a gradual recovery in Nigeria’s business environment, although sustaining the momentum will depend on continued stability in costs and stronger demand conditions in the months ahead.
