The Stanbic IBTC Purchasing Managers’ Index report has shown that Nigeria’s private sector sustained its growth momentum at the end of 2025, supported by stronger customer demand that translated into higher new orders, output, and purchasing activity.

According to the December 2025 report, firms recorded an increase in employment levels during the month, although the pace of job creation remained marginal across the private sector.

The report also noted a mild increase in inflationary pressures during the review period, while highlighting a significant improvement in business sentiment. It stated that “Inflationary pressures picked up modestly in December but remained generally close to recent lows. Meanwhile, business confidence improved sharply”.

The Purchasing Managers’ Index is the headline figure derived from the survey, with readings above 50.0 indicating an improvement in business conditions compared with the previous month, while readings below 50.0 signal a deterioration.

Data from the report showed that the headline PMI stood at 53.5 in December, slightly lower than the 53.6 recorded in November, but still pointing to a solid monthly improvement in overall business conditions as the year came to an end.

The improvement marked the thirteenth consecutive month of strengthening operating conditions, a trend that was broadly consistent with the average PMI performance recorded throughout 2025.

Commenting on the findings, the Head of Equity Research West Africa at Stanbic IBTC Bank, Muyiwa Oni, said: “Headline PMI moderated for the second consecutive month in December, although still in the growth territory and the latest reading is broadly in line with the average for 2025 as a whole.

“The continued expansion in business activity in December, albeit slightly softer than November, reflects higher customer demand, which supported a marked monthly increase in new orders. “This in turn encouraged companies to expand their purchasing activity and inventory holdings.

“Meanwhile, there was a marked improvement in business confidence among the companies as sentiment hit a six-month high, linked to planned investments in business expansions, including opening of new branches and plans to boost products exports.

“While overall input prices increased sharply in December from the near five-year low posted in November, the rate of inflation was weaker than the 2025 average.

“Because of this high input cost, selling prices also increased in December with the most significant price increase seen in the Manufacturing sector. The pickup in inflationary pressures in December may be connected to the higher spending patterns associated with the December festive period. And so, inflation should increase Month on Month and Year on Year in December, although the YoY increase is likely to be significant on account of a low-base effect from the corresponding period of the prior year – an outcome of the country’s rebased Consumer Price Index.

“Therefore, we estimate inflation at 1.44% MoM which implies a CPI of 132.34, and YoY headline inflation of 32.34% in December.”