Nigeria’s February PMI shows strongest productivity growth in 14 months
Onome Amuge
The Nigerian economy experienced its fastest growth in productivity since January 2024 in February 2025, according to the recent Purchasing Manager’s Index (PMI) report from Stanbic IBTC Bank. This is as the headline figure jumped from 52.0 in January 2025 to 53.7 in February 2025.
February 2025’s upturn in the PMI score not only marked an acceleration in Nigeria’s economic performance, but also represented the fastest rate of growth since January 2024, signaling an upward trend in business conditions across various sectors, the report showed.
According to the report, February data pointed to improved growth momentum in the Nigerian private sector. Rates of expansion in output, new orders and purchasing activity all quickened as demand picked up and inflationary pressures showed signs of moderating.
“The headline PMI rose to 53.7 in February from 52.0 in January, signalling a solid monthly improvement in business conditions, and one that was the most pronounced since January 2024. The health of the private sector has now strengthened in three consecutive months,” the report highlighted.
Data from Stanbic IBTC Bank’s latest PMI report revealed that Nigerian firms expanded their output for the third consecutive month in February, buoyed by stronger customer demand and higher sales.
The report highlighted that all four monitored sectors—agriculture, manufacturing, services, and wholesale and retail—posted an uptick in activity, albeit with a marginal growth observed in the wholesale and retail category.
According to the report, output was up in agriculture, manufacturing, services and wholesale & retail, although in wholesale & retail the rise was only fractional. New orders also increased at a marked pace, with the latest rise the most pronounced in just over a year.
February’s PMI report from Stanbic IBTC Bank pointed to a significant improvement in customer confidence, as evidenced by a willingness to initiate new projects. This uptick in demand coincided with a welcome moderation in inflationary pressures, marking a notable shift in the economic landscape.
Despite the positive developments, overall input costs increased at the slowest pace in ten months, highlighting the lingering impact of cost pressures on businesses. However, the rate of inflation eased somewhat, primarily attributed to lower raw material costs and a marked increase in staff costs, which reached its highest level since March 2024.
Commenting on the PMI report, Muyiwa Oni, head of equity research West Africa at Stanbic IBTC Bank, attributed the growth of activity in Nigeria’s private sector to relatively stable exchange rate and moderation in fuel prices, which supported the ease in inflationary pressures and in turn helped to strengthen consumer demand in the month.
Oni added: “Thus, new orders increased for the fourth consecutive month, with survey participants noting a greater desire on the part of customers to commit to new projects. In line with the increase in new orders, output also increased sharply in February as the output index settled at 56.9 points from 53.7 points in January.
“That said, input price inflation eased further in February to its weakest level since April 2024. However, about 39.0 per cent of respondents increased their output prices in the month, with less than 1.0 per cent lowering their charges.”
Oni projected that the non-oil sector of Nigeria’s economy is expected to further improve in 2025, underpinned by the continued stability and increased liquidity in the foreign exchange market, reduced borrowing costs, and overall positive outlook for key sectors such as manufacturing, trade, and real estate.
The head of equity research noted that these developments, along with anticipated reductions in borrowing costs, are expected to provide additional support for the growth of the non-oil sector of the Nigerian economy in 2025.