TUE DEC 02 2025-theGBJournal| The introduction of new products helped to boost customer demand in November, leading to further expansions of new orders and business activity in the Nigerian private sector, according to the latest Stanbic IBTC Purchasing Managers’ Index (PMI) report.
”Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration,” Stanbic IBTC said in their latest report, adding that at 53.6, the latest reading signalled a solid strengthening in the health of the private sector, and one that was only slightly less pronounced than seen in October (54.0).
Output growth eased slightly in November but remained marked overall. Expansions were signalled across all four broad sectors covered by the survey.
Stanbic said panellists linked output growth to higher sales, the securing of more customers and the launch of new products, which also helped to boost new business.
New orders increased for the thirteenth month running, and at a sharp pace that was the fastest in three months.
Companies were helped by an easing of inflationary pressures, continuing the trend seen through much of 2025.
The rate of overall input cost inflation remained sharp, but eased to the lowest in almost five years amid weaker increases in both purchase prices and staff costs.
In turn, the pace of output price inflation eased for the sixth time in the past seven months and was the weakest since April 2020.
Companies increased both their staffing levels and purchasing activity in November, albeit to varying degrees. While employment growth slowed and was only marginal, the rate of expansion in input buying hit a seven-month high.
The sharp rise in purchasing helped inventories to increase at the fastest pace since June 2023 as companies stockpiled in response to higher new orders and prepared for future customer requirements.
Despite expanded capacity, backlogs of work increased for the first time in four months amid delayed payments by customers.
Suppliers’ delivery times, on the other hand, continued to shorten, with vendor performance improving for the fifth month running in November.
Business confidence continued to trend downwards midway through the final quarter, easing for the fifth month running to the lowest since May. Those respondents with an optimistic outlook for output over the coming year linked this to business investment and expansion plans.
“We still see the Nigerian economy growing by 4.0% in 2025. Both Manufacturing and Services are likely to see higher growth in 2025 compared to 2024 levels, based on the results from the PMI surveys so far this year,” said Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank.
Oni noted that new orders have now increased in each of the past 13 months. Consequently, output increased across all four broad sectors (Agriculture, Manufacturing, Wholesale & retail, and Services) covered by the survey, led by Manufacturing and Services.
“Input costs continue to soften, easing to their slowest since December 2020, underpinned by weaker rises in both purchase prices and staff costs. Survey participants that signalled a rise in purchase prices compared to October linked this to higher costs for raw materials and transportation.
The changes in output prices also mirrored the input cost. This is as output price inflation also eased in November, slowing for the sixth time in seven months to the weakest since April 2020.
Oni said Stanbic IBTC still see the Nigerian economy growing by 4.0% in 2025.
”Both Manufacturing and Services are likely to see higher growth in 2025 compared to 2024 levels, based on the results from the PMI surveys so far this year.”
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