Nigeria's private sector has achieved its strongest growth in more than 4.5 years, according to the latest Stanbic IBTC Bank Nigeria Purchasing Managers' Index (PMI) report. The report, released on October 3, 2026, revealed that the PMI rose to 56.4 points in September, up from 54.3 points in August. This significant increase indicates that Nigerian businesses experienced improved activity during the month.
The September PMI figure is the highest reading since February 2022, and it shows that businesses are doing better than they did in the previous month. A PMI reading above 50 signifies an improvement in business activity, while a reading below 50 indicates a decline. The increase in new orders was a major driver of growth, with companies reporting their strongest growth in new orders since February 2022.
The growth in new orders led to an increase in output, with all four sectors covered by the survey recording growth. Businesses also increased their purchases of raw materials and other inputs needed for production, with the pace of purchasing being the fastest since February 2022. Some companies bought more materials in anticipation of stronger demand in the months ahead.
The report also revealed that the increase in inventories was the fastest since the end of 2021. Suppliers delivered goods faster for the third consecutive month, with companies attributing this to prompt payment to suppliers. This improvement in the supply situation helped to drive business growth.
In response to increased orders, businesses employed more workers in September. However, the rate of job creation remained modest, with many new workers employed temporarily to complete specific projects. This cautious approach to hiring may be due to concerns about the sustainability of the growth trend.
Despite the positive growth, companies continued to face rising costs. The report did not provide details on the specific cost pressures, but it is likely that businesses are facing challenges related to inflation, exchange rates, or other external factors. The ability of businesses to manage these costs will be crucial to sustaining the growth momentum.
The Stanbic IBTC Bank Nigeria PMI report is a monthly survey of about 400 private-sector companies, providing valuable insights into the performance of Nigeria's private sector. The report's findings suggest that the private sector is playing a vital role in driving economic growth in Nigeria, and its continued growth will be essential for the country's economic development.
Key points
- Nigeria's private sector recorded its strongest growth in over four years in September, driven by increased customer demand and orders.
- The growth in new orders led to an increase in output, with all four sectors covered by the survey recording growth.
- Businesses employed more workers in September, but the rate of job creation remained modest.
