Nigeria’s private sector recorded its strongest output progress in additional than 4 years in September, pushed by a surge in new orders, improved buyer demand and elevated enterprise exercise, though rising gas, uncooked materials and labour prices continued to place strain on firms.
The newest Purchasing Managers’ Index (PMI) report compiled by S&P Global for Stanbic IBTC Bank confirmed that the headline PMI rose for the second consecutive month to 56.4 factors in September, from 54.3 factors in August.
The newest studying, the best since February 2022, indicated a major enchancment in general private-sector enterprise circumstances and marked a stronger efficiency within the third quarter in contrast with the second quarter of 2026.
According to the report, the development was largely pushed by the fast improve in new orders, supported by stronger buyer demand and the introduction of latest merchandise.
New enterprise elevated for the eighth consecutive month, recording its quickest enlargement since February 2022. Consequently, enterprise exercise additionally grew at its sharpest tempo in additional than 4 years.
The enlargement was broad-based, with all 4 sectors monitored by the survey recording progress in September.
To meet rising workloads, firms considerably elevated their buying actions, with some companies increase inventories in anticipation of additional enhancements in demand.
The ensuing stock accumulation was the best because the finish of 2021. Improved provider efficiency additionally supported enterprise operations, with distributors recording their third consecutive month of higher supply efficiency.
Employment elevated in the course of the month, though the tempo of recruitment remained modest. Some firms relied on momentary staff to execute particular tasks and handle rising workloads.
The further capability helped companies sustain with new orders, leading to a marginal decline in excellent work for the second consecutive month.
However, the development in enterprise exercise got here amid mounting inflationary pressures.
The report confirmed that buy costs elevated sharply in September, with enter price inflation reaching a three-month high. Businesses attributed the rise largely to greater gas and transportation prices, alongside rising costs of animal feed, meals merchandise and different uncooked supplies.
Staff prices additionally elevated as employers adjusted wages to assist staff deal with the rising price of dwelling and supplied incentives to make sure well timed completion of tasks.
Consequently, companies transferred a few of the further prices to clients by way of greater promoting costs. Output value inflation accelerated to its quickest tempo since June.
Commenting on the report, Muyiwa Oni, Head of Equity Research, West Africa, at Stanbic IBTC Bank, mentioned the September PMI studying indicated a major enchancment in enterprise circumstances and a stronger third-quarter efficiency relative to the second quarter.
He mentioned the sturdy finish to the quarter urged that PMI readings had been in keeping with projected year-on-year GDP progress of 4.56 per cent within the third quarter of 2026.
Oni additionally projected that Nigeria’s full-year financial progress might attain roughly 4.4 per cent in 2026, in contrast with 3.87 per cent in 2025.
He expects the non-oil sector to carry out higher, with manufacturing recording the largest enchancment, supported by beneficial base results, whereas info and communications expertise, commerce, actual property, and finance and insurance coverage are anticipated to drive services-sector progress.
Meanwhile, enterprise confidence improved in September, with firms expressing optimism concerning the 12-month outlook. Respondents cited enlargement plans, together with opening new branches and exploring export alternatives.
The newest PMI efficiency suggests strengthening private-sector exercise, though sustained progress will rely partly on whether or not companies can handle rising manufacturing prices with out undermining demand.
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