Nigeria’s private sector activity gained fresh momentum in August as stronger customer demand and new product launches pushed new orders to their highest level in 12 months. The latest Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI), compiled by S&P Global, climbed to 54.3 in August from 52.5 in July, extending the sector’s expansion to seven consecutive months.
The rise in new orders encouraged businesses to step up production and overall activity during the month, with all four broad sectors covered by the survey recording growth. Private-sector output also increased for the 21st consecutive month, while agriculture and manufacturing recorded particularly strong performances. Improved access to materials further helped businesses meet rising demand and keep operations moving.
The stronger private-sector performance comes against the backdrop of Nigeria’s wider economic growth. Data from the National Bureau of Statistics (NBS) showed that the economy expanded by 4.43 per cent in real terms in the second quarter of 2026, up from 4.23 per cent in the same period a year earlier. Agriculture and services grew by 4.39 per cent and 4.60 per cent respectively, while the non-oil sector expanded by 4.31 per cent year-on-year.
Despite the stronger business environment, companies continued to face rising costs. Higher fuel and transportation expenses, alongside increased raw material prices, pushed purchase-cost inflation higher in August. Businesses responded by raising their selling prices, resulting in faster output price inflation. On the positive side, employment increased for the 15th consecutive month, although the pace of job creation remained modest, while backlogs of work declined for the first time in seven months.
Muyiwa Oni, Head of Equity Research, West Africa, at Stanbic IBTC Bank, said the latest PMI figures reflected stronger demand and expanding business opportunities. He noted that companies remained optimistic about future growth, with plans to hire more workers, expand into new locations and increase exports. Oni said third-quarter PMI readings continued to point to strong economic growth and could support a 4.1 per cent full-year GDP growth rate, with the non-oil sector and manufacturing expected to provide significant momentum.
source: The guardian
