Nigeria's Economic Growth Rate Slows Down in July 2025

Strategic Insights -

Nigeria's economic growth rate declined in July 2025, with the manufacturing sector recording the steepest decline. The Nigerian Economic Summit Group (NESG) attributed the slowdown to high interest rates, insecurity, and insufficient power supply, which weakened operational stability and business profitability. Despite a general deceleration across various sectors, businesses in Nigeria sustained a positive performance, with the Current Business Index slightly declining to 105.4 points in July from 113.6 points in June 2025.

Key Takeaways:

  • The manufacturing sector led the business slowdown, recording the steepest decline, with an index point of 98.0.
  • High interest rates, insecurity, and insufficient power supply were major constraints hindering growth, according to the NESG-Stanbic IBTC Business Confidence Monitor report.
  • Non-manufacturing, Agriculture, Trade, and Services also saw a slowdown in activity compared to June 2025.
  • Key sub-indices such as export, supply order, prices, and employment posted lower values relative to June 2025.
  • The cost of doing business reversed the upward trend in July, with input prices surging during the period.
  • Businesses highlighted major challenges, including limited access to financing, unreliable electricity supply, inconsistent economic policies, high commercial lease and rental costs, and insecurity.

Statistics:

  • The Current Business Index declined to 105.4 points in July from 113.6 points in June 2025.
  • The manufacturing sector index slipped into the contraction region at 98.0 index points.
  • Non-manufacturing sector index stood at 112.6 points.
  • Agriculture sector index was at 107.0 points.
  • Trade sector index was at 103.2 points.
  • Services sector index was at 101.9 points.

Sources:

  • "NIESG-Stanbic IBTC Business Confidence Monitor for July 2025"
  • "Vanguard"
  • "AllAfrica Global Media (allAfrica.com)"