Nigeria’s Purchasing Managers’ Index (PMI) stood at 52.0 in January 2025, according to the latest report by Stanbic IBTC Bank. Although slightly lower than December’s 52.7, the index remains above the crucial 50.0 mark, signifying sustained private sector growth.
The report attributes this growth to improved client demand, which has led to increased willingness among businesses to commit to new projects. Stronger market conditions have also heightened optimism, driving business expansions to their highest level in over a decade.
Business activity continued its upward trajectory, with firms expanding operations to meet rising demand. While new orders grew at a slower rate than in December, employment levels improved for the second consecutive month. Inflationary pressures eased, as input costs and output prices increased at a slower pace, allowing businesses to stabilize their operations.
Sector-wise, three of the four analyzed industries recorded growth, with wholesale and retail being the exception. Nigeria’s non-oil sector grew from 3.0% in 2024 to 3.2% in 2025, and projections indicate sustained growth in the coming years. Improved vendor agreements and faster payment cycles contributed to better supplier delivery times, while output charges and input price increases slowed, reflecting easing inflationary trends.
Stanbic IBTC analysts predict that Nigeria’s headline inflation will drop to an average of 30.5% in 2025, down from 33.18% in 2024. Key growth drivers include ICT, financial services, trade, and manufacturing, while agriculture remains constrained due to security challenges and high input costs.
Muyiwa Oni, Head of Equity Research, West Africa at Stanbic IBTC Bank, stated that Nigeria’s private sector activity maintained its momentum in January, albeit at a slightly lower level than in December. He highlighted an increase in both output and new orders, along with improving customer demand and a greater willingness among companies to commit to new projects.
The latest PMI report underscores the resilience and optimism of Nigerian businesses despite ongoing economic challenges. Increased firm expansion, hiring, and inventory stockpiling reflect confidence in the economy’s trajectory. The continued slowdown in inflationary pressures also bodes well for businesses seeking to control costs and sustain profitability.
For companies, the steady rise in new orders suggests that corporate and consumer demand is stabilizing, enabling long-term planning and short-term investments. The employment rate’s consecutive rise further indicates that businesses are actively preparing for future growth opportunities.
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