Nigeria's private sector activity grows in May, driven by output and new orders

Nigeria's private sector experienced a solid expansion in May, as indicated by the Stanbic IBTC Bank's Purchasing Managers' Index (PMI). The headline PMI climbed to 54.1, up from 52.4 in April, marking the most significant monthly improvement in business conditions since August 2025 and extending a four-month streak of strengthening private sector health.

The report highlights that both output and new orders saw marked and accelerated expansions in May, reaching seven- and nine-month highs respectively. This growth was supported by anecdotal evidence pointing to improved customer demand and the introduction of new products. Consequently, companies increased their purchasing activity and inventories, with expansion rates quickening from April.

However, the rise in economic activity was accompanied by increased output prices, particularly in the manufacturing and agriculture sectors. Higher fuel costs continued to drive up input costs, although the rate of inflation softened compared to April. Companies passed these increased costs onto consumers, leading to the steepest rises in charges within the manufacturing and agriculture categories. Employment trends were mixed, with gains in agriculture and services contrasting with a decline in manufacturing, despite overall output growth across all monitored sectors.