Nigeria’s Private Sector Records 54.2-point Growth in August 2025

The Purchasing Managers’ Index™ (PMI®) report published by Stanbic IBTC Bank of Nigeria indicated that the Nigeria’s private sector experienced a modest improvement in August 2025, with the PMI rising by 0.2 points—from 54.0 in July to 54.2. This marks the ninth consecutive month the index has remained above the 50.0 threshold, reflecting sustained expansion in business activity and overall improvement in the operating environment. Typically, a reading above 50.0 suggests business growth compared to the previous month, 50.0 indicates stability, while a figure below 50.0 signals contraction.

The uptick in August’s PMI was attributed to stronger consumer demand and easing inflationary pressures, which boosted business sentiment and confidence in future market conditions. This continued resilience points to a steady, if gradual, recovery of Nigeria’s private sector despite ongoing infrastructural limitations. Moreover, the moderation in input and output prices suggests that inflation is slowing, a development that underscores the positive impact of recent monetary tightening by the Central Bank of Nigeria (CBN). Such stability could eventually encourage the Monetary Policy Committee (MPC) to consider a more accommodative approach to support growth.

To consolidate these gains, both the government and the CBN should uphold policies that sustain lower inflation and foster private sector expansion. This includes improving access to affordable financing for small and medium-sized enterprises (SMEs) and investing in critical infrastructure such as power and transport systems. Ensuring consistency and transparency in economic policy will also be essential for strengthening investor confidence and attracting both local and foreign investment. Source: Stanbic IBTC Bank Nigeria PMI® Report – August 2025