Nigeria’s private sector closed 2025 on a firm note, with stronger customer demand sustaining growth in business activity and lifting the Stanbic IBTC Bank Nigeria Purchasing Managers’ Index to 53.5 in December 2025.
This was disclosed in the latest PMI report released by the bank and compiled by S&P Global. The index is based on survey responses from purchasing managers across a panel of about 400 private sector companies.
The December PMI reading was broadly stable compared with November’s 53.6, pointing to an improvement in operating conditions for the 13th straight month. Rising demand supported increases in new orders, output, and purchasing activity, while job creation remained modest. Inflationary pressures also ticked up slightly but stayed close to recent lows.
The report noted that December’s growth was driven by stronger customer demand, which underpinned a notable month-on-month increase in new orders. The expansion in sales marked the 14th consecutive monthly rise and was only marginally softer than in November.
The reported stated, “In turn, companies expanded output sharply, with the pace of growth broadly in line with that seen in November. All four broad categories saw output rise, led by agriculture. Stronger customer demand also encouraged firms to expand their purchasing activity and inventory holdings. Employment was also up, but only marginally and at the slowest pace since June 2025. For the second month running, companies noted a slight rise in backlogs of work. Delays in completing projects were reportedly caused by material shortages and power supply issues.
“The pace of inflation quickened but remained among the weakest in the past six years. Staff costs also increased at a faster pace as firms paid employees for additional work.
“Companies responded to higher input costs by raising their selling prices in December. Here too, the pace of inflation quickened but was only slightly stronger than the recent low posted in November. Manufacturing registered the sharpest rise in charges among the four monitored categories.”
Business confidence in Nigeria’s private sector strengthened in December, with nearly 59 per cent of respondents anticipating growth, fueled by planned investments in operational expansion and the launch of new branches.
Commenting on the PMI, the Head of Equity Research, West Africa, at Stanbic IBTC Bank,
Muyiwa Oni said, “Headline PMI (53.5 vs. November: 53.6) moderated for the second consecutive month in December, although it remained in growth territory and broadly in line with the 2025 average. Continued expansion in business activity reflects higher customer demand, which supported a marked monthly increase in new orders. This encouraged companies to expand purchasing activity and inventory holdings. Meanwhile, business confidence improved markedly, hitting a six-month high, linked to planned investments in business expansion, including the opening of new branches and plans to boost product exports.
“While overall input prices increased sharply in December from the near five-year low recorded in November, the rate of inflation remained weaker than the 2025 average. Selling prices also increased, with the most significant rise seen in the manufacturing sector. The pickup in inflationary pressures may be linked to higher spending during the festive period. We estimate inflation at 1.44 per cent m/m, implying a CPI of 132.34 and y/y headline inflation of 32.34 per cent in December.”
