Nigeria Private Sector Activity Eases in October

The Stanbic IBTC Bank Nigeria PMI edged down to 55.7 in October 2026 from 56.4 in September, indicating continued improvement in private-sector business conditions for the ninth consecutive month, albeit at a slower pace. Growth in new orders moderated slightly, despite continued support from stronger customer demand and new product launches. However, output rose across all four monitored sectors. Employment growth also slowed to a three-month low. Backlogs of work fell for a third consecutive month, with the pace of depletion reaching its fastest since January. Purchasing activity continued to rise, although the increase in stocks of purchases eased from September. On prices, higher fuel costs drove purchase price inflation to a four-month high, while selling price inflation accelerated to its fastest pace in four months. Business confidence remained strongly positive, despite easing slightly from September.

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.