FX.co ★ Nigeria PMI Falls in May

In May 2025, the Stanbic IBTC Bank Nigeria PMI recorded a decline to 52.7, its lowest in four months, down from 54.2 in April. Despite the Nigerian private sector maintaining growth, signs of a deceleration materialized, attributed to persistent inflationary pressures. The rates of increase in output and new orders slowed, and employment saw its first decline in six months. "Nigeria's business conditions are set to finish the second quarter of 2025 on a positive note, although at a slightly weaker pace than observed in the first quarter. This is largely due to the accentuated effects of currency depreciation, rising raw material costs, and heightened transportation prices compared to Q1. On a brighter note, with inflation projected to be less severe than the 2024 average, interest rates are anticipated to decrease this year, which will aid in sustaining economic growth in the medium term," stated Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank.