A new report by Stanbic IBTC Bank Nigeria has revealed that in May 2026, growth momentum strengthened in the Nigerian private sector, with the Purchasing Managers’ Index (PMI) rising to an impressive 54.1 points from 52.4 points in April.
It was disclosed that output and new orders increased in the month under review, with firms ramping up their purchasing accordingly, though expansions in employment remained muted.
On the price front, higher fuel costs continued to cause sharp increases in input costs and output prices, but rates of inflation softened from April.
The rise in headline PMI signalled a solid monthly improvement in business conditions and one that was the most pronounced since August 2025. The health of the private sector has now strengthened in four consecutive months.
Central to the solid improvement in business conditions were marked and accelerated expansions in both output and new orders during May. Rates of growth hit seven- and nine-month highs respectively. Anecdotal evidence pointed to improving customer demand and the launch of new products.
Output growth was recorded across all four broad sectors covered by the survey. Improving demand, and the prospect of further growth in the months ahead, led companies to expand their purchasing activity and inventories in May.
Here too, rates of expansion quickened from April and were sharp. Efforts to secure inputs were helped by an improvement in vendor performance, as prompt payments, goods arrangements with suppliers and better road conditions helped to speed up deliveries.
Employment continued to rise only slightly midway through the second quarter, although sustained job creation has now been recorded in each month for a year. Meanwhile, backlogs of work increased for the fourth successive month amid customer payment delays, material shortages and power failures.
“Private sector activity in Nigeria improved to its best level in nine months, with the headline PMI rising to an impressive 54.1 points in May from 52.4 points in April.
“This impressive business condition was primarily due to accelerated expansion in both output (56.6 vs April: 53.4) and new orders (57.0 vs May: 54.6) as evidence pointed to improving customer demand and the launch of new products. Input prices maintained an uptrend, but the pace of increase eased for the second consecutive month.
“This is also reflected in higher output prices with the steepest increase seen in the manufacturing and agriculture sectors,” the Head of Equity Research West Africa at Stanbic IBTC Bank, Mr Muyiwa Oni, commented.
Last month, the National Bureau of Statistics (NBS) disclosed that the Nigerian economy grew by 3.89 per cent year-on-year in the first quarter of 2026.