The latest Stanbic IBTC Purchasing Managers’ Index (PMI) report on Nigeria’s economy has indicated an uptick trend in business activity in November this year, representing the 13th consecutive month of improvement in the key sectors of the economy.
In the month under review, the headline PMI stood at 53.6, above the 50.0 no-change threshold, reflecting an improvement in business conditions in the economy.
Although slightly below October’s reading of 54.0, the November PMI figures showed continued expansion across the four monitored sectors, namely Agriculture, Manufacturing, Wholesale & Retail, and Services.
According to the report, firms attributed the growth in output to increased sales, customer acquisition, and the introduction of new products, which collectively pushed new orders to their fastest growth rate in three months. New business rose sharply, expanding for the 13th month running.
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The Stanbic IBTC report’s findings showed that despite only marginal job creation, companies significantly increased their purchasing activity.
It stated: “Input buying rose at the quickest pace in seven months, enabling firms to raise inventory levels to their highest since June 2023 as they prepared for stronger future demand.”
A notable trend in the November survey was the continued easing of inflationary pressures, as Input cost inflation moderated to its lowest point in nearly five years, supported by softer increases in both purchase prices and staff costs.
Also, the report showed that output price inflation moderated, rising at the slowest pace since April 2020.
While some entities still reported higher raw material and transport costs, Stanbic IBTC reported that overall pricing pressures had subsided significantly compared to recent years, adding that the “softening has helped businesses keep prices more stable, supporting higher customer demand and improved competitiveness.”
The PMI report also indicated that suppliers’ delivery times shortened for the fifth consecutive month, reflecting improving vendor performance.
However, Stanbic IBTC noted that despite increased capacity, firms experienced a rise in backlogs for the first time in four months, mainly due to delayed customer payments.
The report also showed that suppliers’ delivery times shortened for the fifth straight month, reflecting improving vendor performance
The PMI report’s findings revealed that despite increased capacity, firms experienced a rise in backlogs for the first time in four months, largely due to delayed customer payments.
The PMI report revealed that employment growth slowed, with most firms taking a cautious approach amid a declining trend in business confidence.
Stanbic IBTC further stated: “Optimism fell to its lowest since May, although some respondents expect output to rise in the coming year, driven by business expansion, investments, and new product pipelines.”
Speaking on the survey findings, Head of Equity Research, West Africa at Stanbic IBTC Bank, Muyiwa Oni, said Nigeria’s private sector continued to benefit from easing inflation and more stable operating conditions.
He clarified: “New orders rose to 56.9 points, a three-month high, and have now increased every month for over a year. Manufacturing and services led output growth in November, supported by rising demand and improved price stability.”
The banker noted that with inflation softening and the exchange rate gradually stabilising, sectors such as manufacturing, services, and retail were poised for stronger performance in 2025.
Stanbic IBTC has projected that Nigeria’s economy will grow by 4.0% in 2025, with broader sectoral contributions expected in 2026, listing some of the key drivers as government activity in infrastructure, livestock development, trade facilitation, and renewed investments in oil and gas, and manufacturing sectors.
