Nigeria Feb. whole economy PMI rises to 53.2 vs 49.7 in Jan

Nigeria Feb. whole economy PMI rises to 53.2 vs 49.7 in Jan

Nigeria’s February Whole-Economy PMI Rises to 53.7, Marking Strongest Growth in 14 Months

Nigeria’s private-sector activity expanded at its fastest pace in 14 months in February 2025, with the Stanbic IBTC Bank Purchasing Managers’ Index (PMI) rising to 53.7 from 52.0 in January 2025. This marks the most significant monthly improvement since January 2024 and follows three consecutive months of growth in the sector. The index, which measures business conditions across agriculture, manufacturing, services, and wholesale/retail, indicates strengthening demand.

Output increased across all monitored sectors, with agriculture, manufacturing, and services expanding notably. New orders rose at a marked pace, driven by stronger customer demand and a greater willingness to commit to new projects. While wholesale and retail activity saw only a fractional increase, the overall expansion in purchasing activity and output suggests improved momentum in the private sector.

Input price inflation eased in February to its lowest level since April 2024, though staff costs rose sharply—the steepest increase since March 2024. About 39% of respondents raised output prices, reflecting ongoing cost pressures. Analysts attributed the growth to a relatively stable exchange rate and moderated fuel prices, which supported consumer demand.

The PMI improvement aligns with broader economic trends. Nigeria’s real GDP grew by 3.84% year-on-year in Q4 2024, the strongest quarterly expansion since Q4 2021. Services contributed 79% of GDP growth, followed by agriculture (11.9%) and industry (9%). With foreign exchange stability and anticipated lower borrowing costs, the non-oil sector is expected to gain further traction in 2025.

Despite lingering inflationary challenges, the data underscores resilience in Nigeria’s economy, with private-sector activity poised to remain a key growth driver.