The private sector in Nigeria witnessed its first business expansion in six months, according to the latest Purchasing Managers Index (PMI) report by Stanbic IBTC Bank. The report revealed that December recorded a PMI of 52.7, an improvement from November’s 49.6 and the highest since January 2024, signaling solid growth in private sector activity.

The PMI, a key indicator of business health, measures economic trends with readings above 50 signaling improvement and those below 50 indicating contraction.

According to the report:

Increased for the fourth time in five months, with growth attributed to improved client demand and rising customer numbers.

Expanded after five consecutive months of contraction, with all four broad sectors experiencing growth.

Rates remained elevated, adding to operational challenges.

Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank, commented, In line with the seasonal boost in economic activity during the festive period, private sector activity surpassed the 50-point threshold, reflecting the strongest growth since January 2024.

He added, Renewed expansions in output, purchasing, and employment levels contributed to the sector’s recovery. However, while some firms increased staff to meet higher demand, others faced challenges in paying wages, leading to staff reductions.The PMI report highlights growing optimism in Nigeria’s private sector despite persistent inflationary pressures. The surge in new orders and increased economic activity reflect improved consumer demand, setting a positive tone for the business environment entering 2025.