Demand revival lifts private sector PMI to 54.3

A pickup in demand is feeding through to production, with companies across the private sector stepping up activity in August as new orders reached their highest level in 12 months.

The Stanbic IBTC Bank Nigeria PMI rose to 54.3 points from 52.5 in July, according to data compiled by S&P Global, marking seven consecutive months of private-sector expansion.

The acceleration was driven principally by stronger inflows of new business, with companies reporting improved customer demand and the launch of new products. The increase in orders subsequently encouraged firms to step up output and business activity during the month.

The latest PMI reading adds to evidence of a recovery in economic activity following the stronger-than-expected second-quarter performance reported by the National Bureau of Statistics (NBS).

Nigeria’s real gross domestic product (GDP) expanded by 4.43 percent year-on-year in the second quarter of 2026, compared with 4.23 percent in the corresponding quarter of 2025. Agriculture and services remained key contributors, growing by 4.39 percent and 4.60 percent respectively, while the non-oil economy accelerated to 4.31 percent from 3.64 percent a year earlier.

The PMI data indicate that the momentum has carried into the third quarter, with output in the private sector increasing for the 21st consecutive month.

All four broad sectors monitored in the survey recorded expansion, with agriculture and manufacturing posting particularly strong increases. Improved availability of materials also helped companies raise production during the month.

Muyiwa Oni, head of equity research, West Africa, at Stanbic IBTC Bank, said the latest reading reflected stronger demand and an increase in business opportunities.

“Private sector activity in Nigeria was in an expansionary territory for the seventh…