Purchasing Managers Index increases to 54.3 Points in March 2025

The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) rose to 54.3 points in March 2025 from 53.7 in February, marking the fourth consecutive month above the 50.0 threshold, which signals an improvement in business conditions.

The improvement was driven by sharp expansions in output and new orders, with March seeing the fastest growth in 14 months. Also, demand climate improved across all four sectors. This momentum led firms to expand their staffing levels- the most notable increase in seven months- and to boost purchasing activity, with a sharp rise in input buying.

Easing inflationary pressures, including slower growth in input and staff costs, enabled businesses to stockpile inputs in line with current and anticipated demand. Suppliers’ delivery times also improved, supported by prompt payments and better road conditions. 

To further sustain the expansion, business confidence needs to be bolstered by ensuring that the inflation rate decelerates below 15% and the maintenance of a stable exchange rate.

To achieve this, the Central Bank of Nigeria (CBN) should prioritize stabilizing the Naira to reduce uncertainty and support long-term business planning. Furthermore, the government must strengthen coordination between fiscal and monetary policies to create a more predictable macroeconomic environment. Clear, consistent, and complementary policies are essential to sustain growth, reassure stakeholders, and drive continued expansion in Nigeria’s private sector. Source: CSEA Africa