Nigeria Private Sector Growth Softens in July

The Stanbic IBTC Bank Nigeria PMI eased to 52.5 in July 2026 from 53.4 in June, signalling a sixth consecutive monthly improvement in private sector operating conditions. New orders continued to rise, supported by product launches, competitive pricing, and stronger customer demand. Business activity increased further, led by gains in agriculture and manufacturing, while growth in services and retail moderated. Employment and purchasing activity expanded as firms responded to higher workloads, although backlogs rose slightly due to logistical challenges despite improved supplier performance. Inflationary pressures softened, with both input costs and output prices rising at slower rates, while staff costs increased modestly. Agriculture recorded the strongest increase in selling prices, whereas services posted the weakest inflation. Firms remained optimistic about output over the coming year, although confidence eased from June's one-year high.

The Stanbic IBTC Bank Nigeria PMI eased to 53.4 in June 2026 from 54.1 in May, but remained well above the 50-point threshold. The pace of growth in output and new orders softened from the previous month, while manufacturing was the only broad sector to record a decline in business activity. Despite the moderation, strong customer demand and new product launches continued to support marked growth in sales and business activity. Improving demand encouraged firms to increase employment, purchasing activity, and inventories. Employment rose for a thirteenth consecutive month, with hiring at its fastest pace since February. On the price front, input costs and selling prices remained elevated due to higher fuel, raw material, and transportation costs. Looking ahead, firms remained optimistic about the year ahead, with business confidence climbing to its highest level since June 2025, supported by expansion plans, advertising efforts, and stockpiling.

The Stanbic IBTC Bank Nigeria PMI rose to 54.1 in May 2026 from 52.4 in April, signaling the strongest improvement in private sector business conditions since August 2025. The increase was driven by sharper growth in both output and new orders. Stronger demand prompted firms to increase purchasing activity and inventories, while supplier performance improved due to prompt payments, better vendor coordination, and improved road conditions. Employment also continued to increase, although hiring growth remained modest despite sustained job creation over the past year. On the price front, higher fuel costs linked to the Middle East conflict continued to lift input and selling prices, although both input cost and output price inflation eased to multi-month lows. Business confidence remained positive on expansion and product-launch plans, though sentiment slipped to a one-year low amid persistent cost pressures and economic uncertainty.