Nigeria’s private sector recorded its strongest growth in nine months in May, driven by a sharp increase in customer demand and new product launches, according to the latest Stanbic IBTC Bank Purchasing Managers’ Index (PMI).
The headline PMI rose to 54.1 in May from 52.4 in April, marking the fourth consecutive month of improvement in business conditions and the highest reading since August 2025. A PMI reading above 50 indicates an expansion in business activity.
The survey showed that both output and new orders expanded at accelerated rates during the month, reaching seven-month and nine-month highs respectively as firms reported stronger customer demand and the introduction of new products. Output growth was recorded across all major sectors of the economy covered by the survey.
With demand strengthening and firms anticipating further growth, businesses increased purchasing activity and built up inventories at a faster pace than in April. Improved supplier performance, supported by prompt payments, better logistics arrangements, and improved road conditions, also helped shorten delivery times.
Despite the positive momentum, employment growth remained modest. Companies continued to add workers, extending a year-long trend of job creation, but hiring remained subdued relative to the pace of expansion in output and orders. Backlogs of work also increased for a fourth consecutive month, partly due to customer payment delays, material shortages and power supply challenges.
