Nigeria’s Business Performance Index (BPI) rose to +12.29 in April 2025, signaling a positive outlook for private sector activities and showing an improvement from the +6.58 recorded in March 2025.

This uptick reflects a gradual, albeit cautious, return of business confidence, driven by improvements in operational outlook, production activity, and marginal gains in the macroeconomic environment.

This was disclosed in the latest NESG-Stanbic IBTC Business Confidence Monitor (BCM) for May 2025, titled “Private Sector Sustains Growth Momentum Amid Obvious Business Risks and Challenges.”

Nigeria’s April BCM paints a familiar picture of structural bottlenecks frustrating enterprise growth, with power supply shortages still topping the list of concerns for businesses. According to the latest findings, the ranking of business constraints remained virtually unchanged from March, underscoring the deep-rooted nature of these challenges.

The power supply problem—chronic and systemic—was again ranked as the most critical obstacle to business expansion. It was closely followed by rising costs of commercial leases and rental spaces, limited access to finance, unclear economic policy direction, and persistent difficulties in accessing foreign exchange.

While these barriers remain largely unaddressed, the report revealed that businesses are not folding their arms. Instead, some sectors, particularly manufacturing, continue to exhibit resilience.

Nigeria’s manufacturing sector posted a modest increase in the BCM Index, rising from +8.25 in March to +8.78 in April 2025. Though marginal, the uptick is noteworthy, given the dual pressure of poor infrastructure and insecurity that continues to weigh on production and investor sentiment.

The report credited the sector’s endurance to strategic caution, as manufacturers scaled back their production planning in April in anticipation of disruptions.

“This situation is exacerbated by widespread insecurity and an unstable macroeconomic environment. As a result, manufacturing firms adopted an extremely cautious approach to production planning in April to mitigate potential losses,” the report noted.

Lack of production space was also flagged as a growing concern. As manufacturers look to scale up output, especially with export opportunities tied to the African Continental Free Trade Area (AfCFTA), inadequate facilities have hampered growth.

Despite these hurdles, Nigerian businesses showed tentative hope for the months ahead. The Future Business Expectation Index ticked up to +28.98 in April from +28.04 in March. This measured optimism was especially evident in the Trade and Non-Manufacturing sectors, where operators anticipate slight increases in demand and profitability.

Businesses expect output to rise modestly, despite capacity constraints. Exporters see some opportunity, though not enough to fuel major growth. There is also a high level of expectation for improved profitability, likely buoyed by anticipated consumer demand recovery. Improved liquidity is foreseen in the near term, and firms are moderately optimistic about expanding their workforce, a signal of tentative hiring plans.

However, the report tempers this outlook with realism. It warns that Nigeria’s macroeconomic conditions remain fragile. Inflation remains high, interest rates are elevated, and consumer purchasing power continues to shrink—factors that could derail the mild recovery if left unaddressed.

The BCM report urged policymakers to step in with reforms that can deliver immediate relief to businesses and unlock private sector-led growth. Chronic outages and rising diesel costs are choking productivity across sectors, necessitating urgent attention to the electricity supply.

Monetary policy clarity is also essential. The Central Bank’s communication has been inconsistent, and businesses remain unsure about long-term borrowing costs or currency stability. Access to finance continues to be a challenge, particularly for small and medium-sized enterprises (SMEs) that struggle to secure affordable credit. Furthermore, many rural and informal businesses remain cut off from the formal financial system, limiting their scalability and contribution to the national economy.

As businesses brace for mid-year performance reviews, the general tone across sectors is one of measured anticipation. There is hope, but it is guarded, heavily reliant on whether policymakers can deliver the necessary fixes in time.

Google has announced a major partnership with Elementl Power, a nuclear energy startup, to develop three new advanced nuclear reactor sites in the United States.

The deal underscores the tech giant’s growing urgency to secure reliable, carbon-free power for its data centers as artificial intelligence (AI) drives unprecedented energy demand across the company’s global infrastructure.

The agreement, announced this week, sets out plans for each site to contribute at least 600 megawatts (MW) of generating capacity, totaling a potential 1.8 gigawatts (GW) of nuclear energy. The reactors will be designed to feed power into the grid, with a commercial off-take option allowing Google to directly purchase electricity generated from the sites.

“Our collaboration with Elementl Power enhances our ability to move at the speed required to meet this moment of AI and American innovation,” said Amanda Peterson Corio, Google’s Global Head of Data Center Energy.

AI Push Fueling Massive Energy Investments

Google’s energy demand is exploding. The company plans to spend $75 billion this year alone on expanding its data center footprint, primarily to support its rapidly evolving AI ambitions. As AI models become more powerful and data-intensive, tech companies are facing growing scrutiny over their energy consumption. Nuclear power, especially small modular reactors (SMRs), has emerged as a promising solution due to its reliability, carbon-free credentials, and suitability for deployment near data centers.

The deal with Elementl Power marks a shift in Google’s energy strategy toward nuclear energy in a more direct and developmental role. The company will provide early-stage capital to help Elementl prepare the three sites, whose specific locations have not yet been disclosed.

Elementl Power Enters the Spotlight

Until now, Elementl Power had operated largely under the radar. The company was launched by infrastructure firm Breakwater North and is backed by the investment group Energy Impact Partners. Although it has not yet built a nuclear power plant, its team reportedly includes veterans of the nuclear industry.

In a statement, Elementl described itself as “technology agnostic,” meaning it has not yet committed to a specific SMR technology for the planned sites. This approach allows the company to remain flexible and potentially choose from several competing reactor technologies, depending on regulatory approvals and performance benchmarks.

That said, Kairos Power, one of the more advanced SMR developers, may emerge as a leading contender. Google has an existing agreement with Kairos Power to purchase up to 500 MW from its future reactors. Kairos’ demonstration plant is expected to produce 50 MW, with full-scale commercial deployment reaching 150 MW across two reactors.

Silicon Valley’s Nuclear Turn

Google’s nuclear pivot reflects a wider embrace of SMRs across the tech industry. The promise of modular manufacturing, quicker deployment timelines, and the ability to site reactors close to high-consumption hubs like data centers has made SMRs an attractive proposition for tech firms looking to meet carbon goals while ensuring 24/7 power.

Startups such as Oklo, X-Energy, and Kairos Power have all signed deals with major tech firms or utilities, but real-world progress has been slow. Despite strong investor interest and government backing, no SMR has yet been completed outside China. In the United States, NuScale Power came close to building the country’s first SMR before its flagship project collapsed in 2023. Its utility partner withdrew after costs more than doubled, even as NuScale scaled down its plans in a bid to salvage the deal.

However, Elementl Power believes the time is ripe for nuclear energy’s next chapter. The company says it aims to bring over 10 GW of advanced nuclear capacity online in the U.S. by 2035 and is working with utilities and regulators to identify viable project locations and partnerships.

A Crucial Step for Google’s Clean Energy Goals

For Google, the move into nuclear isn’t just about supply; it’s about securing future-proof, sustainable energy in a volatile and energy-hungry era. The company has pledged to run on 24/7 carbon-free energy by 2030, an ambitious goal that will require it to go beyond intermittent renewables like solar and wind.

The ability to tap into nuclear power, especially from modular reactors that can be co-located with or near data centers, represents a key component of that strategy. If successful, the partnership with Elementl could signal a new model for how Big Tech sources energy, blending private capital, next-gen infrastructure, and advanced technology to meet a growing climate and operational imperative.

The projects remain in the early stages, with development timelines, reactor types, and permitting processes still to be finalized.