FX.co ★ Nigeria Private Sector Activity Sustains Growth

The Stanbic IBTC Bank Nigeria Purchasing Managers' Index (PMI) slightly decreased to 54.2 in April 2025, from a previous peak of 54.3 in March, which was the highest in over a year. Nonetheless, this still marked the fifth consecutive month of expansion in Nigeria's private sector, with output growth showing a robust performance not seen since January 2024. Additionally, employment levels have increased for the fifth consecutive month, achieving their highest level in eight months. Companies reacted to rising workloads by enhancing employment and efforts to meet demand. Despite these efforts, the accumulation of backlogs continued, even as businesses amplified their hiring and purchasing activities. On the inflationary front, input costs escalated due to heightened raw material prices and currency depreciation. This led to a further rise in output charges, with inflation being slightly stronger than the preceding month. Looking forward, businesses maintained a positive outlook for the business activity over the next 12 months, although overall sentiment has weakened for the third month in a row.