Despite reported improvements in Nigeria’s the country’s merchandise trade in the early part of this year, the Nigerian Economic Summit Group (NESG), a leading economic think tank group in the country, has listed limited access to funding as one of the key constraints traders in the country were contending with over the past months.
In its just published “Trade Sector Report: From High Volume Commerce to Productive Distribution”, the think tank reported that although traders recorded positive cash flow and access to credit, profitability dipped and most of the business owners expressed concerns about the high cost and availability of financing to sustain their operations.
According to the report’s findings, the business constraint rankings identified limited access to funding as the biggest challenge of the traders, moving from second place in 2024, with a score of 12, followed by inadequate power supply, unclear economic policies and the cost of commercial lease and rental property, all of which scored 10.
The NESG clarified: “The H1-2026 constraint rankings identify limited access to financing as the most frequently cited constraint, with a score of 12, followed by inadequate power supply, unclear economic policies, and the cost of commercial lease and rental property, each scoring 10.”
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The group noted that the continued financing constraints to the traders indicated that access to some credit did not necessarily imply that businesses can obtain funding at suitable costs, scales or repayment periods to support expansion.
It described the improving access of traders to foreign exchange (FX) as a desirable development for the sector in view of the potential for growth in their businesses
A further analysis of the NESG’s report reflected that Nigerian traders maintained relatively supportive liquidity conditions in H1 2026 amid sustained pressure on their profitability.
For instance, the report showed that the Access to Credit Index stood at 112.0, while the Cash Flow Index was 121.9, both indicating expansion. Conversely, the Operating Profit Index declined to 98.1 from 102.9 in H1 2025, moving marginally into contraction.
The NESG maintained that the difference between positive cash flow and weaker profitability suggested that businesses continued to generate transactions and maintain liquidity, despite the fact that their profit margins remained under intense pressure.
Similarly, the think tank also identified a gap between current business conditions and expectations of the traders, with the Future Business Expectations Index rising to 156.1 in H1 2026, compared with the current Overall Index of 102.6.
It added that despite the strong outlook, the Future Investment Index remained neutral at 100, implying that traders are optimistic about future turnover and operating conditions, although the expectations is yet to translate into a clear expansionary investment outlook.
Despite the funding constraints the traders are contending with, the latest data published on Nigeria’s merchandize trade in the second quarter of this year reflected that the country’s merchandize trade marginally increased to N41.44 million, representing a 5.61% increase from the N39.24 trillion recorded in the corresponding quarter of 2025.
The data published by the National Bureau of Statistics (NBS) revealed that the country’s 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.
This is even as the statistics agency reported that the trade sector also contributed 17.89% to Nigeria’s Gross Domestic Product (GDP) in the first quarter of this year.
