Nigeria Private Sector Activity Hits More Than 4-Year High

The Stanbic IBTC Bank Nigeria PMI rose to 56.4 in September 2026 from 54.3 in August, signalling a marked improvement in private-sector conditions and the strongest growth in over four-and-a-half years. New orders increased for an eighth consecutive month and at their fastest pace since February 2022, supported by improving customer demand and new product launches. In turn, output growth accelerated to its strongest level since February 2022, with expansions recorded across all four monitored sectors. Purchasing activity also rose sharply as firms sought to meet rising workloads, driving the strongest inventory accumulation since late 2021. Employment increased for a 16th consecutive month, although job creation remained modest. Meanwhile, input cost inflation reached a three-month high, driven by higher fuel, food and raw material costs. Firms became more optimistic about the 12-month outlook, citing expansion plans, new customers and potential export opportunities.

The Stanbic IBTC Bank Nigeria PMI rose to 54.3 in August 2026 from 52.5 in July, signalling a solid improvement in Nigeria’s private-sector conditions. The latest data pointed to the seventh consecutive month of growth and the most pronounced since March 2025. New orders strengthened sharply, growing at their fastest pace since the start of 2024, on improving customer demand and new product launches. Companies responded by accelerating business activity, with the rate of output growth significantly stronger than in July. Improved material availability was also cited as a factor supporting growth. Employment rose for a 15th consecutive month, but job creation remained modest. Backlogs fell for the first time in seven months, while purchasing activity accelerated. Purchase cost inflation rose slightly in August, driven by higher fuel and transport costs, with output price inflation also accelerating. Firms remained confident about future growth, despite a slight dip in sentiment.

The Stanbic IBTC Bank Nigeria PMI eased to 52.5 in July 2026 from 53.4 in in the prior month, although signalling the sixth consecutive month of expansion in the country's private sector. 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.