Nigeria’s non-public sector recorded one other month of development in November, supported by easing inflationary pressures, rising buyer demand, and new product launches, in keeping with the newest Stanbic IBTC Buying Managers’ Index (PMI) report.
The headline PMI stood at 53.6 in November, above the 50.0 no-change threshold, signalling an enchancment in enterprise situations for the thirteenth consecutive month.
Though barely beneath October’s studying of 54.0, the determine displays continued growth throughout the 4 monitored sectors: Agriculture, Manufacturing, wholesale and retail, and Providers.
“Corporations attributed the expansion in output to elevated gross sales, buyer acquisition, and the introduction of recent merchandise, which collectively pushed new orders to their quickest development charge in three months. New enterprise rose sharply, increasing for the thirteenth month operating,” the report mentioned.
Regardless of solely marginal job creation, the Stanbic IBTC report famous that corporations considerably elevated their buying exercise.
It mentioned, “Enter shopping for rose on the quickest tempo in seven months, enabling companies to lift stock ranges to their highest since June 2023 as they ready for stronger future demand.”
One of the notable developments within the November survey was the continued easing of inflationary pressures. Enter price inflation slowed to its weakest level in practically 5 years, supported by softer will increase in each buy costs and workers prices.
Output worth inflation equally moderated, rising on the slowest tempo since April 2020. Stanbic IBTC notes that whereas some companies nonetheless reported increased uncooked materials and transport prices, total pricing pressures have subsided considerably in comparison with current years.
“This softening has helped companies maintain costs extra steady, supporting increased buyer demand and improved competitiveness,” it added.
Operational situations enhance regardless of fee delays
The report additionally famous that suppliers’ supply instances had shortened for the fifth consecutive month, reflecting improved vendor efficiency.
Nevertheless, regardless of elevated capability, companies skilled an increase in backlogs for the primary time in 4 months, primarily as a consequence of delayed buyer funds.
Employment development slowed, with most companies taking a cautious method amid a declining development in enterprise confidence. “Optimism fell to its lowest since Could, though some respondents anticipate output to rise within the coming yr, pushed by enterprise growth, investments, and new product pipelines,” Stanbic IBTC acknowledged.
Commenting on the findings, Muyiwa Oni, Head of Fairness Analysis, West Africa at Stanbic IBTC Financial institution, mentioned Nigeria’s non-public sector continues to profit from easing inflation and extra steady working situations.
“New orders rose to 56.9 factors, a three-month excessive, and have now elevated each month for over a yr,” Oni famous. “Manufacturing and companies led output development in November, supported by rising demand and improved worth stability.”
Oni added that with inflation softening and the alternate charge regularly stabilising, sectors resembling manufacturing, companies, and retail are poised for stronger efficiency in 2025.
Stanbic IBTC tasks Nigeria’s financial system will develop by 4.0% in 2025, with broader sectoral contributions anticipated in 2026. Key drivers embrace authorities exercise in infrastructure, livestock growth, commerce facilitation, and renewed investments in oil & gasoline and manufacturing.
The Dangote Refinery can also be anticipated to strengthen ahead linkages throughout industries, boosting native manufacturing and decreasing import dependence.
“Doubtless decrease rates of interest and extra steady macroeconomic situations ought to assist non-public consumption and enterprise funding,” Oni mentioned. “Taken collectively, these components may considerably enhance dwelling requirements in 2026 in comparison with 2025.”
