NESG: Manufacturing, Agriculture, Others Record Declining Performance

Dike Onwuamaeze

The NESG-Stanbic IBTC Business Confidence Monitor (BCM), a flagship survey-based report of the Nigerian Economic Summit Group (NESG), supported by Stanbic IBTC, has revealed that business performance across most sectors in Nigeria, especially manufacturing and agriculture, remained weak in October.

The NESG-Stanbic IBTC Business Confidence Monitor’s Current Business Index recorded a net balance of -23.24, reflecting the overall economic inertia dominating the month.

It said: “In October 2024, business performance across most sectors in Nigeria remained weak. The NESG-Stanbic IBTC’s Current Business Performance Index recorded a net balance of -23.24, reflecting the overall economic inertia dominating the month. Sub-sectoral analysis revealed a broadly negative business sentiment, with significant declines in agriculture -30.47; manufacturing -28.72; non-manufacturing -28.16 and Trade -23.45. The services sector also faced a mildly negative business condition, marked by a net balance of -6.19.”

According to the report, the Nigeria’s manufacturing sector faced significant challenges, as its NESG Stanbic IBTC BCM index dropped to -28.72 in October 2024, reflecting mildly negative business performance and a notable decline from the previous month.

It said: “This performance downturn was driven by high interest rates, elevated inflation, and rising production costs, which continue to pressure the sector, dampen growth prospects, and erode business performance.

“This negative trend was consistent across most manufacturing sub-sectors, except for non-metallic products, which recorded a modest positive index of 5.83. Among the most affected were the food, beverage and tobacco (-39.45); wood and wood products (-52.05), and electrical and electronics (-67.68), indicating particularly severe struggles in these areas.”

However, sub-sectors such as textiles, apparel, and footwear (-14.20) and other manufacturing (-2.92) showed less severe declines, though they remained in mildly negative territory.

The report stated that key performance indicators further underscored the manufacturing sector’s struggles amid Nigeria’s challenging business climate.

In October 2024, the NESG-Stanbic IBTC BCM index for the agriculture sector registered at -30.47 points, signaling a mildly negative business performance.

This outcome underscored the impact of ongoing structural challenges on the sector, including insecurity, infrastructure deficits, and elevated input costs driven by exchange rate depreciation.

The report said that persistent flooding in major food-producing states, exacerbated by extended rainfall in Q4-2024, has led to significant losses in farmland, crops, yields, and grazing areas.