NIGERIA'S PRIVATE SECTOR POSTS NINE-MONTH HIGH PMI IN MAY — DEMAND AND OUTPUT HIT FASTEST GROWTH SINCE AUGUST

Stanbic IBTC index rises to 54.1 from 52.4; new orders at fastest pace in 9 months; fuel cost pressure easing

Nigeria's private sector recorded its strongest growth in nine months in May, with the Stanbic IBTC Bank PMI rising sharply to 54.1 from 52.4 in April, marking the fourth consecutive month of improvement in business conditions and the highest reading since August 2025, according to data compiled by S&P Global.

The expansion was driven largely by a strong acceleration in new orders and output, with businesses reporting improving customer demand, increased market activity, and the introduction of new products. New orders grew at the fastest pace in nine months, while output expanded at its quickest rate in seven months.

Output and new orders grew more robustly, and increased demand prompted companies to boost purchasing activities and inventories. Supplier delivery times shortened due to prompt payments, better supplier coordination, and improved road conditions.

Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank, noted that input prices maintained an uptrend but the pace of increase eased for the second consecutive month, also reflected in output prices, with the steepest increases seen in manufacturing and agriculture sectors.

The PMI data implied economic growth of approximately 3.99% in Q1 2026, slightly above the official 3.89% growth rate reported by the NBS, with agriculture, manufacturing, construction, information and communication, trade, and finance accounting for 82.4% of real GDP growth in the quarter.

For SME owners, the May PMI confirms that demand is genuinely expanding across the private sector, not just in isolated pockets. Businesses that have been holding back on hiring or investment pending clearer signals now have a fourth consecutive month of data pointing toward a recovery.