September 3, 2025/CSL Research
The latest Purchasing Managers’ Index (PMI) report from Stanbic IBTC Bank shows that Nigeria’s private sector sustained strong growth momentum in August 2025, supported by rising demand and easing inflationary pressures. The headline PMI increased to 54.2 in August from 54.0 in July, the ninth consecutive month above the 50.0 expansion threshold and the strongest improvement since April 2025.
A reading above 50.0 signals growth in business activity, while a reading below this level reflects contraction. Output and new orders recorded multi-month highs, with output rising to 56.8 points from 56.1 in July, and new orders climbing to 58.3 points from 57.3, the fastest pace in 19 months as customer demand strengthened. Growth was recorded across three of the four broad sectors covered by the survey, with manufacturing the only sector to show no expansion.
Employment rose for the third consecutive month, supported by branch openings and marketing initiatives. At the same time, input cost inflation slowed to its weakest level since March 2023, while output price inflation moderated for the fourth straight month, reaching its lowest point since April 2020.
Nigeria’s business activity continues to expand, underpinned by stronger customer demand, rising new orders, and improving market confidence. Firms are responding by opening new branches, scaling up marketing efforts, and increasing recruitment to keep pace with demand.
This momentum is being reinforced by easing input costs and moderating inflation, which are creating more favourable operating conditions and allowing companies to plan output growth with greater certainty. A relatively stable exchange rate since the start of the year, alongside softer petroleum product prices, has also supported this expansion by boosting consumer spending power and enabling businesses, particularly those reliant on foreign exchange for raw materials, to plan with less concern over volatility. Taken together, the August 2025 Stanbic PMI data points to a positive trajectory for Nigeria’s private sector, with business momentum notably stronger than in the past two years. However, sustaining this growth will depend on careful management of currency stability, inflationary risks, and ongoing supply chain challenges.
The August PMI confirms that Nigeria’s private sector recovery is gaining traction. While the manufacturing sector remains a weak spot, overall momentum points to a more favourable business environment. Coupled with prospects of monetary easing, the outlook for investment activity and corporate growth in the second half of 2025 is increasingly positive.
Looking ahead, overall production and composite output are expected to stay in expansion territory, supported by the anticipated further moderation in inflation, which should help ease input cost pressures. However, upside risks to inflation persist and could weigh on the pace of improvement.
Click here to download full report: CSL Nigeria Daily – 03 September 2025 – PMI .pdf
