Nigeria’s private sector growth declines in September 2025

The Stanbic IBTC Bank of Nigeria’s Purchasing Managers’ Index™ (PMI®) report for the month of October shows that the Nigerian Private sector recorded a decline in the month of September 2025, standing at 53.4 points, down from 54.2 index points in August 2025. The September 2025 index remained within the growth trajectory, above the 50.0 benchmark, marking continued improvement in output. An index below 50.0 points shows deterioration in business conditions, an index of exactly 50.0 points signifies no change and an index above 50.0 points signals an improvement in business conditions.
Although the index for September showed a decline from the value recorded in August, due to slight increases in input costs, the PMI continues to point at a solid strengthening of business conditions, which occurred due to easing inflationary pressures and improved output. The drop from 54.2 to 53.4 points, while still above the 50.0 benchmark, implies that business activities are expanding at a slower pace, signalling a potential slowdown in private sector momentum. Furthermore, the slight increase in input costs indicates that firms are still grappling with supply chain inefficiencies and foreign exchange instability.
Therefore, policymakers should sustain efforts to stabilise the exchange rate to ease production costs, as well as expand credit facilities and reduce lending rates to help firms cope with cost pressures and sustain growth momentum. (Nigeria Economic Update Issue 42)