There is a slight slowdown in the private sector’s economic performance
The October 2025 edition of the Stanbic IBTC Bank of Nigeria’s Purchasing Managers’ Index™ (PMI®) report revealed a slight slowdown in the Nigerian private sector’s economic performance for September 2025. The PMI registered at 53.4 points, a decline from 54.2 points in August 2025, yet it remained above the critical 50.0 threshold, indicating ongoing expansion in business activities. For context, a PMI reading above 50.0 signifies improving business conditions, a score of exactly 50.0 reflects stability, and a value below 50.0 indicates deteriorating conditions. Despite the dip, the September figure underscores sustained growth in output, albeit at a moderated pace.
The marginal decline from August to September suggests a tempering of private sector momentum, driven partly by modest rises in input costs. However, the PMI still reflects robust business conditions, bolstered by easing inflationary pressures and steady output growth. The slight uptick in input costs highlights persistent challenges, including supply chain bottlenecks and foreign exchange volatility, which continue to strain firms’ operational budgets. While the private sector remains on a growth path, the slower expansion signals potential vulnerabilities that could hinder sustained progress if unaddressed.
To maintain and strengthen this growth trajectory, policymakers must prioritize measures to alleviate cost pressures on businesses. Stabilizing the exchange rate is critical to reducing production expenses, particularly for firms reliant on imported inputs. Additionally, expanding access to credit and lowering lending rates could provide much-needed relief, enabling businesses to navigate rising costs and sustain their expansion. By addressing these structural challenges, Nigeria can foster a more resilient private sector capable of driving long-term economic growth. For further details, refer to the original PMI report at Stanbic IBTC Bank and related economic insights at CBN.
