Nigeria’s private sector returned to growth in February, with business activity strengthening as rising customer demand and easing inflationary pressures boosted market confidence, according to the latest Purchasing Managers’ Index (PMI) report by Stanbic IBTC Bank.
The headline PMI climbed to 53.2 points in February, up from 49.7 in January, returning above the 50-point mark that signals sector expansion. The improvement reflects a rebound in operating conditions following a brief contraction earlier in the year, with business activity having steadily strengthened since December 2024.
“The upturn was driven by renewed growth in new orders, as firms reported improved customer demand, increased affordability, and competitive pricing strategies,” the report said. The output index rose to 55.8 from 50.2 in January, marking the fastest pace of expansion in four months, while new orders jumped to 55.5 from 49.9.
All four sectors surveyed posted growth, with wholesale and retail rebounding from their January decline to join other sectors in expansion territory. The rise in order volumes encouraged companies to increase staffing levels for the ninth consecutive month, with February recording the fastest pace of job creation since October.
Despite the positive trend, backlogs of work rose at the fastest rate since May 2020, driven by delayed client payments, material and labour shortages, and ongoing power supply constraints, the report noted.
Commenting on the findings, Muyiwa Oni, Head of Equity Research, West Africa at Stanbic IBTC Bank, said the rebound reflects stronger customer demand and improved pricing conditions. He projected Nigeria’s economy to grow by 3.86 percent year-on-year in the first quarter of 2026 and 4.1 percent for the full year, supported by infrastructure spending, oil and gas investments, exchange rate stability, and anticipated lower interest rates.
The February PMI underscores renewed momentum in Nigeria’s private sector, signalling that firms are steadily recovering from early-year disruptions and positioning the economy for stronger growth ahead.