Nigeria’s private sector recorded a rise in new orders in November, reaching the highest level in three months as inflationary pressures continued to ease. This is according to the latest Stanbic IBTC Bank Nigeria Purchasing Managers’ Index report, compiled by S&P Global and released on Monday.
The development came after the National Bureau of Statistics announced that Nigeria’s headline inflation rate dropped to 16.05 per cent in October 2025, down from 18.02 per cent in September. The slowdown in inflation helped to ease pressure on businesses, contributing to stronger sales and customer demand across the economy.
According to the PMI report, the headline index remained above the 50.0 mark, which separates expansion from contraction. The PMI stood at 53.6 in November, indicating a solid improvement in business conditions, although slightly below the 54.0 recorded in October. The survey showed that all four major sectors recorded expansions, including agriculture, manufacturing, construction, wholesale and retail, and services.
Panellists told S&P Global that growth in business output was supported by higher sales, more customers, and the introduction of new products by companies trying to respond to rising demand. New orders increased for the thirteenth consecutive month, with November’s rise being the sharpest in three months. Respondents said they were encouraged by easing inflation and more stable operating conditions compared to earlier in the year.
The report stated that the rate of input cost inflation remained high but fell to the lowest level in nearly five years. Businesses experienced slower increases in the cost of raw materials and staff wages. As a result, output prices also rose at a slower pace. The report added that output price inflation eased for the sixth time in seven months and was the weakest recorded since April 2020, giving companies more room to compete for customers.
Employment conditions showed mixed results. The survey revealed that companies increased staffing levels in November, but the growth was marginal and slower than in previous months. However, purchasing activity rose sharply and reached a seven-month high, as firms stocked up on inputs in anticipation of future demand. Many companies reported increased inventories as they prepared for expected customer orders. But despite increased capacity, backlogs of work rose for the first time in four months due to delayed payments from some clients.
The PMI report noted that business confidence weakened further in November, falling for the fifth straight month to the lowest point since May. While many respondents remained optimistic, their expectations were tied to new investments, expansion plans, and hopes of improved economic conditions in the coming year.
Commenting on the data, the Head of Equity Research for West Africa at Stanbic IBTC Bank, Mr Muyiwa Oni, said the PMI confirmed that the private sector remained in the expansion zone despite moderating slightly from October. Oni said the continued improvement in output reflects easing inflation, which has helped businesses gain more customers and launch new products. He noted that new orders climbed to 56.9 points in November, up from 56.3 in October, marking a three-month high and extending the growth streak to 13 months.
Oni added that input costs have continued to soften, recording their slowest increase since December 2020. He explained that higher raw material and transport costs contributed to the remaining pressure faced by some companies, but the overall trend remained favourable. Output price inflation also slowed in line with declining input costs, giving many businesses additional room to grow.
On the broader economy, Oni said Stanbic IBTC still expects Nigeria’s economy to grow by 4.0 per cent in 2025. He said both the manufacturing and services sectors are likely to record higher growth compared to 2024 based on PMI trends so far. According to him, government activity in infrastructure, livestock development, trade facilitation, and increased investments in oil, gas, and manufacturing are gradually supporting improved economic performance.
He also highlighted the impact of the Dangote Refinery, saying the facility is expected to strengthen forward-linkage activities that will boost productivity across several sectors. Oni added that lower interest rates—if supported by declining inflation and more stable exchange rates—could stimulate stronger private consumption and higher business investment in 2026. With these improvements, he said more sectors are expected to contribute to real GDP growth, which could lead to better living conditions for Nigerians compared to 2025.
