The latest PMI reading marks the thirteenth consecutive month of business condition improvements, according to data from Stanbic IBTC Bank Nigeria PMI survey compiled by S&P Global.
Growth in December was driven by improved customer demand, which supported a marked increase in new orders. This was the fourteenth consecutive monthly rise in sales, only slightly weaker than November’s increase. Companies responded by expanding output sharply, with agriculture leading growth among the four broad sectors surveyed.
Businesses also increased their purchasing activity and inventory holdings due to stronger customer demand. Employment rose for the sixth consecutive month, though only marginally and at the slowest pace since June 2025.
Inflationary pressures picked up modestly in December but remained close to recent lows. Higher raw material prices led to a marked rise in purchase costs, while staff costs increased as firms paid employees for additional work. In response, companies raised their selling prices, with manufacturing registering the sharpest increase.
Business confidence improved significantly, jumping to a six-month high with nearly 59% of respondents predicting growth. This optimism was largely based on planned investments in business expansions and new branch openings.
Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank, commented that while input prices increased sharply in December from November’s near five-year low, the inflation rate remained weaker than the 2025 average. He attributed the pickup in inflationary pressures to higher spending patterns during the festive period.
Oni projected Nigeria’s economy to grow by 3.8% in 2025 and 4.1% in 2026, with both manufacturing and services likely to see higher growth in 2025 compared to 2024 levels.
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