Blog Details

Nigeria’s private sector returned to expansion in February, as the Stanbic IBTC Bank Purchasing Managers’ Index rose to 53.2 from 49.7 in January, signalling a renewed improvement in business conditions after a brief contraction at the start of the year.

The latest reading, released on Monday, indicates a solid monthly recovery in the health of the private sector, with business conditions improving continuously since December 2024, except for the January dip.

The PMI, compiled by S&P Global and endorsed by the National Bureau of Statistics (NBS), is a diffusion index where readings above 50.0 signal improvement compared to the previous month.

The report read,

The report noted that the rebound was driven primarily by a renewed increase in new orders, supported by improving customer demand and better product affordability

Anecdotal evidence from surveyed firms pointed to higher customer numbers and new product offerings, which fed into a marked rise in output at the fastest pace in four months

Companies responded to higher order volumes by expanding purchasing activity and inventory holdings markedly during the month.

Suppliers’ delivery times shortened further, helped by prompt payments and improved traffic conditions

Commenting on the data, Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank, noted that stronger customer demand supported higher new product offerings at competitive pricing, with output and new orders regaining momentum in February.

An appreciation of the naira contributed to a marked slowdown in inflationary pressures during the month.

The report linked the softer price environment partly to the naira trading below N1,400 per dollar since late January, supported by stronger external accounts, higher offshore FX inflows and improved remittances, alongside Central Bank interventions to moderate currency appreciation.

Looking ahead, business sentiment improved in February, although it remained relatively muted.

The survey data were collected between February 10 and 25, 2026, based on responses from around 400 private sector firms across agriculture, mining, manufacturing, construction, wholesale, retail and services.