Susan Abayomi
Nigeria’s private sector recorded a significant improvement in business activity in September, with output expanding at its fastest pace since February 2022, according to the latest Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI).
The headline PMI rose to 56.4 in September from 54.3 in August, marking the second consecutive monthly increase and signalling the strongest improvement in private-sector business conditions in more than four years.
The latest expansion was largely driven by stronger demand and a sharp increase in new orders. New business rose for the eighth consecutive month, with the rate of growth reaching its highest level since February 2022.
According to the PMI survey, improving customer demand and the introduction of new products helped companies secure additional orders during the month. The increase in new business subsequently encouraged firms to raise their output and overall business activity.
Growth was broad-based, with all four sectors monitored by the survey recording marked expansions.
To meet rising workloads, companies also increased their purchasing activity significantly in September. Some businesses reportedly bought inputs in anticipation of further improvements in demand, contributing to the strongest accumulation of inventories since the end of 2021.
Employment also increased during the month, extending the current period of job creation to 16 consecutive months. However, the pace of employment growth remained modest, with some companies relying on temporary workers to handle specific projects and increased workloads.
Despite the stronger business performance, cost pressures remained a concern. Input price inflation accelerated to a three-month high, with businesses citing higher fuel costs, raw materials, food products and staff expenses.
The increase in operating costs was reflected in selling prices, which rose at their fastest rate in three months as companies passed some of the additional costs on to customers.
Businesses, however, remained more optimistic about their prospects over the next 12 months. Respondents pointed to expansion plans, efforts to attract new customers, stock-building and potential export opportunities as factors that could support future business activity.
Muyiwa Oni, Head of Equity Research, West Africa at Stanbic IBTC Bank, said the September performance represented a strong end to the third quarter, with improving customer demand and new products helping businesses secure new orders and increase activity.
The latest PMI reading suggests that Nigeria’s private sector entered the final quarter of 2026 with stronger growth momentum, although rising input and selling prices remain important issues for businesses and consumers.
