March 7, 2025/CSL Research

The latest Stanbic Purchasing Managers’ Index (PMI) report indicates that the private sector has strengthened for the third consecutive month. February data shows improved growth momentum across the Industry, Agriculture, and Services sectors. The composite PMI rose to 53.7 in February, up from 52.0 in January, signalling a solid monthly improvement in business conditions. A PMI reading above 50.0 reflects growth in business activity, while a score below 50.0 indicates contraction. A reading of 50.0 signifies no change.

In February, three of the five key PMI indicators showed positive trends, while two declined. Output levels (54.0), new orders (53.0), and the stock of raw materials (50.1) experienced expansion, signalling increased production driven by renewed demand. The relatively stable exchange rate since the start of the year, along with moderating petroleum prices, has played a significant role in strengthening consumer demand. This stability has particularly benefited businesses reliant on foreign exchange for raw materials, allowing them to plan more effectively without concerns over volatility.

However, the employment index contracted to 49.7, reflecting challenges in workforce expansion and inventory accumulation. Additionally, suppliers’ delivery times worsened, falling to 49.5, due to logistical bottlenecks and supply chain delays. Despite increased output and new orders, the private sector’s employment index contracted. While employment rose in manufacturing and services, it declined in agriculture and wholesale & retail. Overall, the February 2025 Stanbic PMI data reflects a positive trend in Nigeria’s private sector. The momentum to sustain production and meet consumer demand appears promising compared to the past two years. However, continued progress will depend on effective management of currency fluctuations, inflation, and supply chain disruptions.

Click here to download full report: CSL Nigeria Daily – 07 March – PMI.pdf​​​​​​​