Nigeria’s private sector recorded another month of improvement in November as new product introductions helped strengthen customer demand, driving further growth in new orders and business activity across key sectors.
The latest Stanbic IBTC Purchasing Managers’ Index (PMI) shows that easing inflationary pressures also supported performance, with input costs rising at the slowest pace in nearly five years and output prices increasing at their weakest rate since April 2020.
The headline PMI, the key indicator derived from the survey, remained comfortably above the 50.0 no-change threshold, marking the twelfth consecutive month of expansion in business conditions.
Commenting on the results, Muyiwa Oni, head of Equity Research (West Africa), Stanbic IBTC Bank, said the November reading reflects ongoing resilience in Nigeria’s private sector.
“Nigeria’s headline PMI remained in expansionary territory in November but moderated slightly compared to October. Nonetheless, strong output continues to reflect easing inflationary pressures, supporting higher sales for businesses launching new products and securing more customers,” Oni said.
New orders rose to a three-month high of 56.9, up from 56.3 in October, and have now increased for 13 consecutive months. Output also expanded across all four sectors surveyed, Agriculture, Manufacturing, Wholesale & Retail, and Services, with Manufacturing and Services leading.
According to Oni, softer input cost pressures played a key role in sustaining growth.
“Input costs eased to their slowest pace since December 2020 due to weaker increases in purchase prices and staff costs. Output price inflation similarly slowed to its weakest level since April 2020,” he noted.
Oni reiterated Stanbic IBTC’s growth outlook, projecting that Nigeria’s economy will expand by 4.0% in 2025, with Manufacturing and Services expected to outperform 2024 levels.
Government investments in infrastructure, livestock development, trade facilitation, and oil & gas are expected to provide additional support, alongside the forward-linkage impact of the Dangote Refinery. Lower interest rates, reduced inflation, and exchange-rate stability are also anticipated to boost private consumption and investment in 2026.
The November PMI reading of 53.6 signalled solid overall improvement, only slightly below October’s 54.0. Panellists attributed business expansion to higher sales, increased customer acquisition, and new product rollouts. Companies also increased input purchases at the fastest rate in seven months, leading to the steepest rise in inventories since June 2023.
Although staffing levels rose, employment growth remained modest. Backlogs of work increased for the first time in four months due to customer payment delays, while supplier performance improved for the fifth consecutive month as delivery times shortened.
Business confidence, however, weakened for the fifth straight month, reaching its lowest point since May. Optimistic firms linked their positive outlook to planned investments and expansion projects.
Overall, the November survey highlights sustained momentum in Nigeria’s private sector driven by innovation, easing cost pressures, and resilient demand, reinforcing a full year of uninterrupted PMI expansion.