Nigeria’s private sector staged a strong recovery in February 2026, driven by renewed customer demand that boosted business activity and helped moderate inflationary pressures, according to the latest Purchasing Managers’ Index survey released by Stanbic IBTC Bank.
The headline PMI climbed to 53.2 in February from 49.7 in January, crossing back above the 50.0 no-change mark to indicate expansion in operating conditions.
The report described the upturn as a solid rebound following a brief contraction at the beginning of the year. With the exception of January’s dip, business conditions have shown consistent improvement since December 2024.
The report stated, “The upturn was driven by a renewed rise in new orders, as firms reported improved customer demand, increased affordability and competitive pricing strategies. The output index climbed to 55.8 from 50.2 in January, marking the fastest pace of expansion in four months. New orders also rose sharply to 55.5 from 49.9.
All four sectors surveyed recorded growth in February, with the wholesale and retail sector rebounding from its January contraction to join the other sectors in expansion.
Rising order volumes prompted firms to expand their workforce for the ninth straight month. The pace of job creation in February was the strongest recorded since October.
Despite the hiring gains, backlogs of work increased at the fastest rate since May 2020. Companies attributed the build-up to delayed client payments, shortages of materials and labour, and persistent power supply challenges.
Commenting on the survey findings, Muyiwa Oni, Head of Equity Research, West Africa at Stanbic IBTC Bank, said the rebound reflected stronger customer demand and improved pricing conditions.
He projected that Nigeria’s economy would expand by 3.86 per cent year-on-year in the first quarter of 2026 and by 4.1 per cent for the full year. The forecast is supported by increased infrastructure spending, investments in oil and gas, greater exchange rate stability, and expected reductions in interest rates.
