Working situations for Nigerian companies worsened sharply in January, with firms going through a steep rise in bills pushed by recent tax measures, larger gas costs and lingering inflation, the Nigerian {Economic} Summit Group has reported.
In line with the newest Enterprise Confidence Monitor launched by the NESG, the price of doing enterprise jumped dramatically to 90.5 factors in January, up from 54.7 factors recorded in December. Enter costs adopted an analogous development, climbing to 96.9 factors from 68.9 factors the earlier month.
“These elevated value pressures are primarily pushed by a ‘good storm’ of latest tax reforms, gas worth changes, and the lagged impact of present inflationary pressures,” the report stated.
The worsening value atmosphere weighed on total enterprise efficiency. The headline confidence index slipped to 105.8 factors from 112.0 factors in December 2025 — its weakest studying in six months — signalling softer exercise throughout a number of sectors of the financial system.
“The slowdown mirrored the weakening state of enterprise efficiency, as two sectors (agriculture and commerce) fell into the contractionary area,” the report stated.
Sectoral information confirmed agriculture dropping beneath the expansion benchmark, falling to 99.5 factors from 112.9 factors, whereas commerce recorded a steeper decline to 92.7 factors from 123.8 factors. Each segments slipped into contraction territory, offsetting positive aspects recorded elsewhere.
Manufacturing and companies remained in enlargement however at a slower tempo. Manufacturing eased to 115.8 factors from 117.9 factors, whereas companies edged right down to 102.1 factors from 104.3 factors. The non-manufacturing phase was the one space that maintained regular development all through the month.
Past rising prices, the report famous weakening enterprise situations throughout a number of indicators, together with production ranges, demand, funding exercise, credit score entry and money movement.
“This displays the everyday post-festive moderation of enterprise actions amid weak client demand,” the NESG stated.
Companies additionally contended with tight financing situations, unreliable electrical energy provide and better property bills, challenges the group stated additional constrained funding choices and operational effectivity.
Trying forward, sentiment remained optimistic however much less upbeat than in earlier months. The Future Enterprise Expectation Index declined to 124.7 factors in January from 132.6 factors in December, suggesting extra cautious projections for the close to time period.
“The sustained optimism, cautious, hinges on a supportive coverage atmosphere, forex stability, and stronger export demand, and election-related uncertainties might restrain new funding.
“Manufacturing recorded the strongest outlook amongst sectors, whereas agriculture posted the weakest degree of confidence within the close to time period,” the report stated.
The most recent figures underline how mounting coverage changes and macroeconomic pressures are squeezing margins and slowing the tempo of enlargement for companies at first of 2026.