Nigeria’s personal sector sustained its progress momentum into the second quarter of 2025, as sturdy customer demand underpinned one other stable enlargement in enterprise exercise, in response to the newest Stanbic IBTC Bank Nigeria Buying Managers’ Index (PMI®) report.
The headline PMI determine stood at 54.2 in April, broadly in keeping with the 54.3 recorded in March, marking the fifth consecutive month that the index remained above the 50.0 no-change threshold.
A studying above 50.0 indicators an enchancment in enterprise circumstances, whereas a determine beneath 50.0 signifies a deterioration.
The continued resilience in personal sector efficiency mirrored sharp progress in output and new orders, in addition to elevated hiring and buying exercise amongst Nigerian companies.
Providers sector leads as output reaches 15-month excessive
In keeping with the report, output elevated on the quickest tempo since January 2024, pushed by strengthening customer demand. All 4 broad sectors monitored — agriculture, manufacturing, companies, and wholesale and retail recorded expansions, with the sharpest progress seen within the companies sector.
Commenting on the event, Muyiwa Oni, Head of Fairness Analysis West Africa at Stanbic IBTC Bank, stated:
“Nigeria’s personal sector enterprise exercise maintained its constructive momentum into the beginning of the second quarter of the yr because the PMI settled at 54.2 in April – broadly in keeping with 54.3 recorded in March. This newest enchancment in enterprise exercise was primarily attributable to improved customer demand amid softening inflationary pressures, serving to to help larger new orders.”
In response to larger workloads, corporations expanded their workforce, resulting in a fifth consecutive month of job creation. Though the tempo of employment progress was modest, it reached an eight-month excessive. Buying exercise additionally noticed a fast acceleration, rising on the quickest charge since February 2022 as companies constructed up shares to handle elevated demand.
Nevertheless, regardless of efforts to increase capability, backlogs of labor rose once more in April, highlighting the continued stress on companies to satisfy stronger order volumes.
“According to this enchancment, the employment degree elevated for the fifth consecutive month, though the tempo of enhance was modest this time,” Oni famous.
Inflationary pressures stay comparatively muted
The survey confirmed that inflationary pressures ticked up in April in comparison with March, however remained subdued relative to 2024 ranges. Greater uncooked materials costs and the affect of native forex depreciation contributed to a sooner rise in buy prices. Employees prices additionally elevated considerably through the month.
Oni defined,
“Elsewhere, inflationary pressures proceed to melt relative to 2024 as elements that considerably drove costs upward final yr have moderated thus far this yr when it comes to impacts. Nonetheless, inflation elevated in April in comparison with March, exacerbated by the affect of native forex depreciation and better vitality prices.”
Manufacturing companies skilled the strongest inflationary pressures amongst all sectors. The upper enter prices have been partly handed on to clients, leading to a slight uptick in promoting costs. Nevertheless, output worth inflation remained among the many weakest seen over the previous two years.
Regardless of the gentle rise in inflation and lingering forex dangers, companies remained typically optimistic about future output, supported by funding plans and enterprise enlargement methods. Nevertheless, confidence dipped for the third straight month amid issues about trade charge fluctuations and international uncertainties.
Trying forward, Stanbic IBTC Bank maintained a constructive outlook for Nigeria’s financial efficiency in 2025.
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