Nigeria’s private sector concluded 2025 on a strong note, driven by rising customer demand and steady business activity. The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) rose to 53.5 in December, indicating continued expansion in the sector. This figure, compiled by S&P Global from surveys of around 400 companies, signals a sustained improvement in operating conditions for the 13th consecutive month.
December’s PMI reading was slightly lower than November’s 53.6 but highlighted ongoing growth, supported by increased new orders, higher output, and expanded purchasing activity. Employment growth was modest, while inflationary pressures edged up slightly yet remained near recent lows. Analysts attribute the growth primarily to stronger customer demand, which fueled a 14-month streak of rising sales.
The report showed that all four broad sectors monitored recorded output increases, with agriculture leading the way. Companies also expanded inventory holdings and purchasing activity, though some faced delays due to material shortages and power supply challenges. Input costs rose, prompting firms to adjust selling prices, particularly in manufacturing, yet inflation remained among the lowest seen in the past six years.
Business confidence in December improved as nearly 59% of respondents anticipated growth, reflecting planned investments, branch expansions, and increased product exports. Muyiwa Oni, Head of Equity Research at Stanbic IBTC Bank West Africa, noted that the private sector’s resilience is underpinned by higher customer demand and strategic business expansions, despite modest increases in inflation and staff costs.
Looking ahead, analysts project Nigeria’s economy to grow by 3.8% in 2025 and 4.1% in 2026, supported by manufacturing and services. Government infrastructure projects, investment initiatives, and the impact of the Dangote Refinery are expected to further boost growth. The positive PMI trend suggests that private sector businesses are well-positioned to maintain momentum into the new year.
source: punch