Research Document: NESG Stanbic IBTC Business Confidence Monitor for December 2024

Posted Tue, Jan 7, 2025 1:52 PM

The NESG-Stanbic IBTC Business Confidence Monitor (BCM) is the flagship survey-based report of the Nigerian Economic Summit Group (NESG), supported by Stanbic IBTC. While business activity experienced some seasonal growth, overall performance across most sectors in Nigeria remained weak yet positive in December 2024. The NESG-Stanbic IBTC Business Confidence Monitor’s (BCM) Current Business Index recorded a net balance of +0.77 from -2.74 in November 2024, reflecting an uptick in commercial activities typically associated with the festive period.

A sub-sectoral analysis revealed broadly subdued outcomes, with a negative performance recorded in Manufacturing (-2.43), Services (-3.46), and Trade (-5.59). Conversely, weakly positive results were observed in the Agriculture (+13.93) and Non-manufacturing (+5.80) sectors. Structural challenges in Nigeria’s business environment intensified, restraining growth despite higher seasonal demand. Elevated inflation and exchange rates drove up operational costs and consumer prices.

The Cost of Doing Business Index rose sharply by +50.32, underscoring mounting pressures. Access to credit improved slightly (+8.25), driven by response to expanding business activities typical of this period. However, businesses identified the high cost of financing as a critical barrier to current performance and future growth expectations.