Nigeria’s private sector recorded another month of growth in November, supported by rising customer demand, new product launches, and easing inflationary pressures, according to the latest Stanbic IBTC Purchasing Managers’ Index report.
The headline PMI for November stood at 53.6, which is above the 50.0 no-change threshold, signaling an improvement in business conditions for the 13th consecutive month.
Although this figure was slightly below October’s reading of 54.0, it reflects continued expansion across the four monitored sectors: Agriculture, Manufacturing, Wholesale & Retail, and Services.
The report stated: “Firms attributed the growth in output to increased sales, customer acquisition, and the introduction of new products, which collectively pushed new orders to their fastest growth rate in three months. New business rose sharply, expanding for the 13th month running.”
Despite only marginal job creation, the Stanbic IBTC report noted that companies significantly increased their purchasing activity.
The report said: “Input buying rose at the quickest pace in seven months, enabling firms to raise inventory levels to their highest since June 2023 as they prepared for stronger future demand.”
One of the most notable trends highlighted in the November survey was the ** continued easing of inflationary pressures**. Input cost inflation slowed to its weakest point in nearly five years, supported by softer increases in both purchase prices and staff costs.
Output price inflation similarly moderated, rising at the slowest pace since April 2020. Stanbic IBTC noted that while some firms still reported higher raw material and transport costs, overall pricing pressures have subsided significantly compared to recent years.
The report added: “This softening has helped businesses keep prices more stable, supporting higher customer demand and improved competitiveness.”
The report also pointed out that suppliers’ delivery times shortened for the fifth straight month, reflecting improving vendor performance.
However, despite the increased capacity, firms experienced a rise in backlogs for the first time in four months, which was largely attributed to delayed customer payments.
Employment growth slowed, with most firms taking a cautious approach amid a declining trend in business confidence. Stanbic IBTC stated: “Optimism fell to its lowest since May, although some respondents expect output to rise in the coming year, driven by business expansion, investments, and new product pipelines.”
Commenting on the findings, Muyiwa Oni, Head of Equity Research, West Africa at Stanbic IBTC Bank, said Nigeria’s private sector continues to benefit from easing inflation and more stable operating conditions.
Oni noted: “New orders rose to 56.9 points, a three-month high, and have now increased every month for over a year.” He further commented: “Manufacturing and services led output growth in November, supported by rising demand and improved price stability.”
Oni added that with inflation softening and the exchange rate gradually stabilising, sectors such as manufacturing, services, and retail are poised for stronger performance in 2025.
Stanbic IBTC projects that Nigeria’s economy will grow by 4.0% in 2025, with broader sectoral contributions expected in 2026. Key drivers for this growth include government activity in infrastructure, livestock development, trade facilitation, and renewed investments in the oil & gas and manufacturing sectors..
The Dangote Refinery is also expected to strengthen forward linkages across industries, boosting local production and reducing import dependence.
Oni concluded: “Likely lower interest rates and more stable macroeconomic conditions should support private consumption and business investment.” He added: “Taken together, these factors could significantly improve living standards in 2026 compared to 2025.”
