Nigeria’s private sector is not slowing down. For the ninth month in a row, businesses are expanding, customers are spending, and confidence is quietly building. August even recorded the strongest growth since April, thanks to rising orders and more output, according to the latest Stanbic IBTC Bank Purchasing Managers’ Index (PMI).

The PMI reading for August stood at 54.2, above the 50.0 benchmark that signals growth. That was slightly higher than July’s 54.0 and marked a solid improvement in overall business conditions. In plain terms, more money was moving, more deals were closing, and more businesses felt good about the months ahead.

So, what drove the uptick? The report states that new orders and output were the key drivers. Demand hit a 19-month high, with customers showing a greater willingness to commit to projects. Output across most sectors followed the momentum, except manufacturing, which lagged.

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On jobs, companies did add more staff in August, but only slightly, and at a slower pace than in July. Still, it was enough to ease backlogs for the first time in five months.

Commenting on the figures, Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank, explained:
 “Business activity increased further in August and has remained above 50 points for the ninth consecutive month. Sharper increases in output and new orders drove the increase in business activity. Notably, output (56.8 points vs. July: 56.1 points) increased in line with customers’ willingness to commit to new projects, while the growth in new orders (58.3 points vs. July: 57.3 points) quickened to a 19-month high amid reports of increasing customer demand. Given these higher new orders, firms expanded their staffing levels for the third consecutive month. The opening of new branches and marketing plans is also supporting firms’ optimism that output will increase over the coming year.”

Costs, however, brought some relief. Input prices rose at their slowest pace since March 2023, helping businesses control output prices. For consumers, that means the pressure of inflation could be easing.

Oni added:
 “The continued moderation of input and output prices still suggests that inflation is likely to remain soft in the near term and may incentivise the Monetary Policy Committee of the Central Bank of Nigeria to switch to an accommodative monetary policy by September from the current neutral stance.

Indeed, we estimate headline inflation to moderate further in August to 21.45 per cent y/y – 21.63 per cent y/y and possibly settle at 17.19 per cent y/y – 17.92 per cent y/y by November. Accordingly, we still expect up to a 150 bps cumulative rate cut in 2025.”

For now, Nigeria’s private sector is showing signs of stronger health, fuelled by demand, steady confidence, and a touch of optimism about the road ahead.

Meiza Nigeria