In January 2025, the Nigerian Economic Summit Group (NESG) and Stanbic IBTC released the Business Confidence Monitor (BCM) report, highlighting a mixed performance in Nigeria's business environment. The report indicated a slight improvement in the Business Performance Index, which rose to +5.69 from December 2024's +0.77, suggesting a modest uptick in economic activity at the start of the year.

However, the report also noted a significant decline in investment, with the investment index dropping by 27.50 points. This reduction in investment activity was identified as a major factor dampening overall business performance and demand.

The BCM report further emphasized that rising inflation, high interest rates, and weakened consumer purchasing power remain key risks that could temper the strength of business recovery in 2025. Despite these challenges, businesses across various sectors expressed moderate optimism about future performance, as reflected in the Business Expectation Index, which stood at +67.20 in January 2025, a significant improvement from December 2024's +28.61.

In summary, while there was a slight improvement in business performance in January 2025, the significant reduction in investment activity poses concerns for sustained economic growth. Addressing structural challenges such as inflation, interest rates, and consumer purchasing power is crucial for bolstering investor confidence and fostering a more robust business environment in Nigeria.