Nigeria’s private sector showed strong signs of resilience at the end of 2025, with business sentiment rising to a six-month high, according to the latest Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI).
The report revealed that close to 59 per cent of surveyed firms expressed optimism about business growth, largely driven by plans to expand operations and open new branches across the country.
According to the PMI, confidence remains underpinned by companies’ willingness to invest in future business activity, even in the face of rising operational costs.
The survey noted that input costs, including raw materials and staff wages, increased in December. These rising expenses compelled many firms to raise their selling prices, with manufacturing companies recording the sharpest price increases among all sectors monitored.
Despite the cost pressures, some firms reported shorter lead times, attributed to prompt customer payments and lighter traffic conditions, which helped improve delivery efficiency.
The report further indicated that although inflationary pressures accelerated during the period, the overall pace of inflation remained among the weakest levels recorded in the past six years.
The Stanbic IBTC PMI, compiled by S&P Global, is based on responses from approximately 400 Nigerian private sector companies operating across key sectors, including agriculture, mining, manufacturing, construction, wholesale, and retail.
Analysts say the improved sentiment reflects cautious optimism within the private sector, as businesses adapt to economic challenges while positioning for growth in the new year.
