Business activity in Nigeria’s private sector strengthened notably in October 2025, posting the highest output growth in six months, even as firms contended with power supply disruptions and delayed client payments that constrained operations.
According to the Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) report compiled by S&P Global, the headline index rose to 54.0 in October from 53.4 in September, signaling a further improvement in overall business conditions. A reading above 50.0 points reflects expansion, while a figure below that threshold indicates contraction.
The latest data marks the 11th consecutive month of growth in private sector activity, driven by steady gains across key industries — manufacturing, agriculture, construction, and services. Analysts say the trend highlights the economy’s resilience despite persistent infrastructure bottlenecks and cost pressures.
The report attributed the rise in output to a sharper increase in new business orders, supported by product diversification and stronger customer demand. Among the four broad sectors monitored, manufacturing recorded the fastest growth, as companies leveraged new product offerings to attract clients and expand market share.
While businesses continued to raise selling prices in response to rising input and wage costs, the pace of inflationary pressure was comparatively subdued. The report noted that output charges rose at the second-slowest rate since April 2020, reflecting a moderation in price growth despite ongoing cost challenges.
However, input cost inflation ticked slightly higher in October, driven by increases in purchase and staff expenses, though it remained below the levels recorded in 2023 and early 2024.
Overall, the latest PMI figures suggest a cautiously optimistic outlook for Nigeria’s private sector heading into the final quarter of 2025, with businesses showing adaptability amid economic headwinds and a gradual easing of inflationary trends.
— Ranks Africa Business Desk
