Limited access to financing was the most frequently cited constraint facing businesses in Nigeria\u2019s trade sector in the first half of 2026, according to the Nigerian Economic Summit Group (NESG).<\/p>\n
The finding is contained in the NESG\u2019s report, Trade Sector Report: From High Volume Commerce to Productive Distribution, which examines the sector\u2019s operating conditions, business performance and expectations.<\/p>\n
The report shows that although traders recorded positive cash flow and access to credit, profitability weakened and businesses remained concerned about the cost and availability of financing.<\/p>\n
The NESG\u2019s H1 2026 constraint rankings placed limited access to financing first, with a score of 12, followed by inadequate power supply, unclear economic policies and the cost of commercial lease and rental property, which each scored 10.<\/p>\n
The report noted that financing had moved from second place in 2024 to the leading constraint in H1 2026, despite the Access to Credit Index remaining in expansionary territory at 112.0.<\/p>\n
The NESG said the continued prominence of financing constraints suggests that access to some credit does not necessarily mean businesses can obtain funding at suitable costs, scales or repayment periods to support expansion.<\/p>\n
It also described the declining prominence of foreign exchange availability as an encouraging development for the sector.<\/p>\n
The report\u2019s financial indicators show that traders maintained relatively supportive liquidity conditions in H1 2026, but profitability came under pressure.<\/p>\n
The Access to Credit Index stood at 112.0, while the Cash Flow Index was 121.9, both indicating expansion. However, the Operating Profit Index declined to 98.1 from 102.9 in H1 2025, moving marginally into contraction.<\/p>\n
Despite the strong outlook, the Future Investment Index remained neutral at 100. This suggests that traders were optimistic about future turnover and operating conditions, but the expectations had not yet translated into a clear expansionary investment outlook.<\/p>\n
The report\u2019s findings come amid growth in Nigeria\u2019s merchandise trade. The country\u2019s total merchandise trade rose to N41.44 trillion in the second quarter of 2026<\/a>, representing a 5.61% increase from the N39.24 trillion recorded in the corresponding quarter of 2025.<\/p>\n Nairametrics previously reported<\/a> that the country\u2019s merchandise trade surplus surged to N7.55 trillion in the first quarter of 2026, up 340.88% from N1.71 trillion in the preceding quarter.<\/p>\n