Nigeria’s private sector concluded 2025 on a positive note, with the Stanbic IBTC Bank Nigeria PMI recording 53.5 in December, indicating continued expansion driven by robust customer demand. Business confidence reached a six-month high amid plans for investments and expansions. Despite rising inflationary pressures, the economy showed resilience across sectors.
The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) for December 2025 stood at 53.5, a slight dip from November's 53.6 but still well above the 50-point mark that denotes growth. This figure represents the thirteenth straight month of improving business conditions, aligning closely with the yearly average and underscoring sustained economic momentum.
Stronger customer demand fueled sharp rises in output and new orders, extending a 14-month streak of sales growth. All four monitored sectors—manufacturing, services, commerce, and agriculture—saw increases, with agriculture leading the way. Companies responded by boosting purchasing and stocking up inventories toward year-end. Employment ticked up marginally, though at the slowest rate since June 2025.
Work backlogs grew slightly for the second month running, blamed on material shortages and unreliable power supply. On a brighter note, supplier delivery times shortened, aided by timely payments and less traffic congestion—the smallest improvement in six months.
Inflationary pressures ticked up after November's near five-year lows. Raw material costs climbed, alongside higher staff expenses for extra work, prompting firms to raise selling prices. Manufacturing saw the steepest hikes, though overall inflation stayed among the lowest in six years.
Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank, highlighted the sector's resilience. “Headline PMI at 53.5 moderated for the second consecutive month in December, although it remained in growth territory,” he said. Oni noted supportive demand conditions and a surge in confidence to a six-month high, tied to plans for new branches and export boosts. Nearly 59 percent of respondents anticipated future growth, focusing on capacity expansions.
Input costs rose sharply but remained below the 2025 average, with the festive season likely exacerbating the uptick.
