Nigeria’s private sector recorded its strongest output development 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 very best since February 2022, indicated a major enchancment in general private-sector enterprise situations and marked a stronger efficiency within the third quarter in contrast with the second quarter of 2026.
According to the report, the advance was largely pushed by the fast enhance 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 development in September.
To meet rising workloads, firms considerably elevated their buying actions, with some companies build up inventories in anticipation of additional enhancements in demand.
The ensuing stock accumulation was the very best for the reason that 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 non permanent staff to execute particular initiatives and handle rising workloads.
The extra capability helped companies sustain with new orders, leading to a marginal decline in excellent work for the second consecutive month.
However, the advance 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 provided incentives to make sure well timed completion of initiatives.
Consequently, companies transferred a few of the extra prices to clients via 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 situations and a stronger third-quarter efficiency relative to the second quarter.
He mentioned the sturdy finish to the quarter prompt that PMI readings have been per projected year-on-year GDP development of 4.56 per cent within the third quarter of 2026.
Oni additionally projected that Nigeria’s full-year financial development 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 most important enchancment, supported by beneficial base results, whereas data and communications know-how, commerce, actual property, and finance and insurance coverage are anticipated to drive services-sector development.
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 development will rely partly on whether or not companies can handle rising manufacturing prices with out undermining demand.
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