The latest Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) report has indicated that Nigeria’s private sector sustained its growth momentum into the second quarter of 2025, based on improved customer demand and other positive developments in the manufacturing industry.
According to the just published PMI data by the lender for the month of April this year, the headline PMI figure marginally dipped to 54.2 compared to the 54.3 it recorded in March, representing the fifth consecutive month that the index remained above the 50.0 no-change threshold.
Based on assessment parameters, PMI reading above 50.0 showed an improvement in business conditions while a figure below 50.0 indicates a decline in performance.
An analysis of the PMI data in April, output surged at the fastest pace since January 2024, driven by strengthening customer demand.
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Specifically, all the four broad sectors monitored namely, agriculture, manufacturing, services, and wholesale and retail recorded expansions, with the sharpest growth recorded in the services sector.
The report further reflected that due to greater workloads, companies engaged more workers leading to a fifth consecutive month of job creation.
According to the report, although the pace of employment growth remains modest in April but still reached an eight-month high just as purchasing activity also significantly improved, rising to the fastest rate since February 2022 as firms built up stocks to manage increased demand.
However, despite efforts to expand capacity, companies’ backlogs of work rose again in the month under review, highlighting the sustained pressure on firms to meet stronger order volumes.
Speaking on the latest PMI report’s findings, the Head of Equity Research West Africa at Stanbic IBTC Bank, Muyiwa Oni, said: “Nigeria’s private sector business activity maintained its positive momentum into the start of the second quarter of the year as the PMI settled at 54.2 in April – broadly in line with 54.3 recorded in March. This latest improvement in business activity was primarily due to improved customer demand amid softening inflationary pressures, helping to support higher new orders.
“In line with this improvement, the employment level increased for the fifth consecutive month, although the pace of increase was modest this time,” Oni added.
The Stanbic IBTC PMI survey showed that inflationary pressures heightened in April compared to March, but remained moderated relative to 2024 levels as higher raw material prices and the impact of the naira depreciation in the foreign exchange (FX) markets contributed to a faster rise in purchase costs.
This is even as staff costs also increased significantly for most firms during the month under review.
On the rising general prices level, Oni clarified: “Elsewhere, inflationary pressures continue to soften relative to 2024 as factors that significantly drove prices upward last year have moderated so far this year in terms of impacts. Nonetheless, inflation increased in April compared to March, exacerbated by the impact of local currency depreciation and higher energy costs.”
