Nigeria’s private sector regained momentum in February, with fresh data showing a return to expansion after a brief slowdown at the start of the year.
Crossing the 50-point barrier denoting expansion, the latest Purchasing Managers Index issued by Stanbic IBTC Bank rose to 53.2 in February from 49.7 in January. The study, conducted by S&P Global and supported by the National Bureau of Statistics, highlights deteriorating corporate conditions across major industries.
The News Chronicle notes that stronger customer demand and more competitive pricing were major factors in increasing fresh orders, which in turn spurred output to its quickest rate in four months. Wholesale and retail companies, which shrank in January, bounced back to growth; job creation has been in the black for nine straight months.
Even with more hiring, companies noted growing backlogs related to late payments, material shortages, and still-existing power supply limitations. Businesses reacted by increasing orders and inventory.
Promisingly, inflation worries subsided across the month. A stronger naira enabled companies to moderate price increases by slowing input cost rises to their lowest point in more than six years.
Looking ahead, Stanbic IBTC analysts predict sustained economic growth in 2026 driven by infrastructure spending, oil and gas investment, manufacturing expansion, and improved trade conditions. Business confidence has grown; however, businesses remain somewhat upbeat about the coming months.
