Nigeria’s private sector maintained its expansion in November, driven by rising customer demand, new product launches, and easing inflationary pressures, according to the latest Stanbic IBTC Purchasing Managers’ Index (PMI) report.
The headline PMI stood at 53.6, signaling continued improvement in business conditions for the 13th consecutive month, despite a slight dip from October’s 54.0 reading. All four monitored sectors, Agriculture, Manufacturing, Wholesale & Retail, and Services recorded growth.
The report indicated that firms credited output expansion to increased sales, customer acquisition, and the introduction of new products, with new orders rising at the fastest pace in three months. New business has now grown for 13 straight months.
Although employment gains were modest, companies increased purchasing activity, with input buying rising at the fastest rate in seven months. Inventory levels reached their highest since June 2023 as businesses prepared for anticipated demand.
A key highlight was the softening of inflationary pressures. Input cost inflation slowed to its weakest level in nearly five years, aided by lower increases in purchase prices and staff costs. Output price inflation also moderated, marking the slowest rise since April 2020.
While some firms faced higher raw material and transport costs, overall pricing pressures eased, supporting stable pricing and competitiveness.
Supplier delivery times shortened for the fifth consecutive month, reflecting improved vendor performance.
However, backlogs rose for the first time in four months due to delayed customer payments. Employment growth slowed as firms remained cautious amid declining business confidence, which fell to its lowest level since May. Still, some companies expect output to improve next year through expansion, investment, and new product initiatives.
The Head of Equity Research, West Africa at Stanbic IBTC Bank, Muyiwa Oni said Nigeria’s private sector continues to benefit from easing inflation and more stable operating conditions.
“New orders rose to 56.9 points, a three-month high, and have now grown consistently for over a year,” he noted. Manufacturing and services led the output growth in November.
Looking ahead, Oni highlighted that lower inflation, stabilising exchange rates, and potential interest rate reductions could bolster performance across manufacturing, services, and retail in 2025.
Stanbic IBTC projects a 4.0 per cent economic growth in 2025, with broader sectoral contributions expected in 2026. Government infrastructure projects, livestock development, trade facilitation, and renewed investments in oil, gas, and manufacturing are key growth drivers.
The Dangote Refinery is also expected to strengthen industrial linkages, reduce import dependence, and boost local production.
“These factors collectively could improve living standards in 2026 compared to 2025,” Oni said, signaling continued optimism for Nigeria’s private sector outlook.