Business Conditions In Nigeria Improved For Third Conservative Month

Data from the Stanbic IBTC Bank Purchasing Managers’ Index™ (PMI®) report indicated that the headline PMI, which assesses business conditions in Nigeria, experienced a 2.4-point rise, moving from 51.6 points in June to 54.0 in July 2025.

This increase marks a third consecutive month of growth in the index value, thereby reflecting a significant enhancement in the private sector. Index values exceeding 50.0 denote improvements in business conditions; values at the 50-point threshold indicate no change, while values below 50.0 suggest a decline.

Moreover, the report highlighted that the Nigerian private sector achieved its highest employment growth since October 2023, attributed to heightened private sector activity (an increase in new orders and output), further supported by diminished inflationary pressures. Enhanced business confidence suggests greater resilience in the private sector, as evidenced by the growth in new orders and outputs.

Additionally, the recovery in the private sector is contributing to job creation, which may assist in lowering unemployment rates within the nation. To maintain this positive trend, the government should enhance access to financing for small and medium enterprises (SMEs), as they play a crucial role in driving new orders and employment.

There is also a necessity for ongoing macroeconomic policies and initiatives to manage inflation, as this is vital for achieving food price stability and ensuring stable exchange rates.