Private Sector Sentiment in Nigeria Improves For a Ninth Consecutive Month

Private sector sentiment in Nigeria improved for a ninth consecutive month, the longest stretch since at least 2022, as a slowdown in inflation drove demand for goods and services.

The purchasing-manager index compiled by Stanbic IBTC Bank and S&P Global rose to 54.2 points in August from 54 a month earlier. Readings above 50 signal an improvement in business conditions, while those below indicate a deterioration.

The reading shows “a sustained improvement in the health of the Nigerian private sector,” Stanbic and S&P said in a statement on Monday. “The rise in the headline index primarily reflected sharper expansions in output and new orders, with rates of growth hitting four- and 19-month highs respectively,” they said.

Improved customer demand led firms to step up purchases of inputs, and a positive outlook has encouraged inventory accumulation, Stanbic and S&P said.

The Nigerian economy is on track to grow 3.5% this year, marginally up from 3.4% in 2024, “supported by softer inflation, improvement in FX liquidity conditions and structural reforms,” Muyiwa Oni, head of equity research for West Africa at Stanbic, said in the statement.