Nigeria’s private sector growth slows amid cost pressure concerns – PMI

Nigeria’s private sector growth slowed in June as the main purchasing managers’ index (PMI) fell to 53.4 in June, down slightly from May’s reading of 54.1, according to the S&P Global/Stanbic IBTC report for June.

According to the June Purchasing Managers’ Index (PMI) report, improving demand conditions helped support further output increases and new orders in Nigeria’s private sector mid-year.

According to MarketForce, increased workloads and the prospect of further growth in the months ahead have caused companies to hire additional staff and increase both purchasing activity and inventories.

The PMI report found that input costs and production prices rose sharply again, although to a lesser extent than immediately following the outbreak of war in the Middle East.

The headline PMI stood at 53.4 in June, down slightly from May’s reading of 54.1, but still above the no-change threshold of 50.0 and signaling a solid monthly improvement in business conditions at the end of the second quarter.

The health of the private sector has strengthened over the last five consecutive months. Panelists frequently reported improved customer demand in June. This, together with the introduction of new products, helped lead to a further sharp increase in sales volumes.

As orders increased and companies expanded their operations, production also increased. In both cases, however, growth rates were weaker than those observed in May.

Economic activity expanded in three of the four major sectors covered by the survey, with the exception of manufacturing. Businesses are also optimistic about an increase in production over the next year and sentiment has improved markedly, reaching its strongest level since June 2025.

Advertising efforts, business expansion plans and inventory building are among the factors supporting confidence, according to respondents. Improved customer demand and confidence in the outlook for the year ahead encouraged companies to expand staffing levels, purchasing activity and inventories in June.