The Purchasing Managers’ Index (PMI®) report by Stanbic IBTC Bank of Nigeria showed that the Nigerian private sector recorded a 0.2-point growth in PMI from 54.0 points in July to 54.2 points in August 2025.
The headline PMI® for August remained above 50.0 points for a ninth consecutive month, signalling an improvement in the overall business environment in the country.
An index reading above 50.0 indicates an improvement in business conditions from the previous month, while a reading of exactly 50.0 points denotes no change. Conversely, a reading below 50.0 points shows deterioration in business conditions within the country.
The increase in the headline PMI for August was driven by increased consumer demand and reduced inflationary pressures. As a result, firms have remained optimistic about business conditions in the coming year. The sustained resilience implies the gradual recovery of the Nigerian private sector despite infrastructural challenges.
The continued moderation in product input and output prices indicates a continued reduction in inflation, highlighting the fact that recent monetary policy tightening measures are yielding stability, and this may encourage the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) to adopt a more accommodative stance in the near future.
Therefore, the government and the Central Bank of Nigeria should maintain policies that sustain reduced inflationary pressures and support SMEs and private sector growth through expanded access to affordable credit and improved infrastructure, such as electricity and logistics. Finally, efforts should be made to ensure policy consistency and transparency to attract both domestic and international investment.
(Credit: Nigeria Economic Update Issue 36)
