Nigeria’s private sector rebounds as PMI climbs to 53.2 pts in February

By Peter Egwuatu

Nigeria’s private sector recorded a strong rebound in February, as renewed growth in customer demand lifted business activity and eased inflationary pressures, the latest Purchasing Managers’ Index (PMI) survey report by Stanbic IBTC Bank has shown.

The headline PMI rose to 53.2 in February from 49.7 in January, returning above the 50.0 threshold that signals expansion.

The improvement, according to the report, points to a solid recovery in operating conditions after a brief contraction at the start of 2026. Aside from January’s dip, business conditions have strengthened consistently since December 2024.

“The upturn was driven by a renewed rise in new orders, as firms reported improved customer demand, increased affordability and competitive pricing strategies. The output index climbed to 55.8 from 50.2 in January, marking the fastest pace of expansion in four months. New orders also rose sharply to 55.5 from 49.9.

All four sectors covered by the survey posted growth, with wholesale and retail rebounding from its January decline to join other sectors in expansion territory.

Higher order volumes encouraged companies to increase staffing levels for the ninth consecutive month, with February’s pace of job creation the strongest since October. Despite this, backlogs of work rose at the fastest rate since May 2020, reflecting delayed client payments, shortages of materials and labour, as well as lingering power supply constraints” the report stated.

Commenting on the data, Muyiwa Oni, Head of Equity Research, West Africa at Stanbic IBTC Bank, said the rebound reflected stronger customer demand and improved pricing conditions. He projected Nigeria’s economy would grow by 3.86 per cent year-on-year in the first quarter of 2026 and 4.1 per cent for the full year, supported by infrastructure spending, oil and gas investments, exchange rate stability and anticipated lower interest rates.

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