Follow Us on Google
By Chinwendu Obienyi
Nigeria’s private sector recorded another month of expansion in November, supported by rising domestic demand, new product rollouts and easing input cost pressures, according to the latest Stanbic IBTC Purchasing Managers’ Index (PMI) report released on Monday.
The headline index stood at 53.6, marking the 13th consecutive month of improvement in business activity and remaining comfortably above the 50-point threshold that separates growth from contraction.
While the figure softened slightly from 54.0 in October, survey data indicated continued momentum across all four monitored industries, Agriculture, Manufacturing, Wholesale & Retail, and Services, underscoring a gradual strengthening in operating conditions following years of volatile inflation and currency weakness.
Businesses surveyed attributed the latest expansion largely to higher customer orders, improved sales conversions and the launch of new product lines. New orders rose at the fastest pace in three months, extending a year-long run of growth, with many firms citing increased customer onboarding and stronger market engagement.
However, employment growth remained modest as companies continued to take a cautious approach toward staffing amid muted business confidence and cash-flow constraints. Backlogs of work increased for the first time in four months, linked to delayed customer payments despite rising capacity and improved supplier performance.
One of the sharpest shifts in the November PMI was the cooling of inflationary pressures. Input cost inflation slowed to its weakest level in almost five years, reflecting softer increases in purchase prices and staff costs. Output charges also rose at the slowest rate since April 2020, suggesting that firms are increasingly able to maintain more stable pricing structures.
Survey participants noted that lower cost pressures helped stimulate demand and enhance price competitiveness after several years of steep inflation.
Other News
Purchasing activity accelerated as input buying rose at its quickest pace in seven months, enabling firms to build inventories to their strongest level since mid-2023. Suppliers’ delivery times improved for the fifth month running, signalling smoother logistics and better vendor reliability than seen earlier in the year.
Despite the improved operating landscape, overall business optimism dipped to its lowest reading since May. Nonetheless, several respondents expect stronger output in the year ahead, underpinned by expansion plans, fresh investment and new product pipelines.
Commenting on the data, Head, Equity Research, West Africa, Stanbic IBTC, Muyiwa Oni, said inflation moderation and FX stability are supporting a more favourable business environment. “New orders rose to 56.9 points, a three-month high, and have now increased every month for over a year,” Oni said. “Manufacturing and services led output growth in November, supported by rising demand and improved price stability.”
Looking ahead, Stanbic IBTC expects Nigeria’s economy to expand by 4.0 per cent in 2025, with broader sectoral improvements anticipated into 2026.
The bank projects stronger contributions from infrastructure development, livestock production, trade reforms and renewed capital flows into oil, gas and manufacturing. The commissioning of the Dangote Refinery is expected to stimulate industrial supply chains, reduce import dependency and deepen domestic production.
Oni noted that lower interest rates and steadier macroeconomic conditions could unlock stronger private consumption and investment over the medium term. “Taken together, these factors could significantly improve living standards in 2026 compared to 2025,” he said.
The latest PMI reading offers further indication that Nigeria’s non-oil private sector may be entering a gradual recovery phase, with inflation easing and demand stabilising. The coming months will reveal whether confidence strengthens enough to translate into bolder hiring, increased capital expenditure and broader productivity gains.
