Nigeria’s Private Sector Hits Four-Year Growth High as Demand Strengthens
Nigeria’s private sector expanded at its fastest pace in more than four years in September, with stronger demand driving higher orders, production and purchases across businesses.
The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index rose to 56.4 points in September from 54.3 in August, marking its highest level since February 2022. A reading above 50 indicates that private-sector activity is expanding.
The latest increase was largely driven by new orders, which grew for the eighth consecutive month and reached their strongest level in more than four years. All four sectors covered by the survey also recorded higher output during the month, pointing to a broad-based improvement in business activity.
Businesses responded to the stronger demand by increasing purchases of raw materials and other production inputs. Inventory levels also rose sharply as some companies stocked up in anticipation of further demand, while improved supplier delivery times helped businesses receive materials more quickly.
The expansion also supported additional hiring, although employment growth remained limited as some firms relied on temporary workers for specific projects. At the same time, rising input costs continued to put pressure on businesses despite the stronger level of activity.
The September figures therefore present a mixed picture for Nigeria’s private sector. Companies are seeing stronger customer demand and expanding operations, but the continued rise in costs remains a challenge to how much of the improved activity can translate into stronger profitability and sustained job creation.
