Business activities in Nigeria’s private sector improved further in April 2025, driven by customer demand, a surge in output, and rising employment levels, according to the latest Purchasing Managers’ Index (PMI) survey.
The latest monthly PMI by Stanbic IBTC Bank released on Friday showed the headline index improved to 54.2 in April from 54.3 in March. Readings above 50.0 signal an improvement in business conditions, while those below show deterioration.
“This marks the fifth consecutive month of expansion, representing a good start across the Nigerian economy at the start of the second quarter,” it said.
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The report noted that output levels accelerated at the fastest pace since January 2024, with all four broad sectors—manufacturing, services, wholesale/retail, and agriculture recording growth. However, the services sector led the way with the sharpest uptick in business activity.
“Companies attributed the growth to a sharp increase in new orders and customer numbers, highlighting higher demand dynamics. The pace of new order growth was similar to that recorded in March, signaling consistency in market expansion,” it said.
In response to higher workloads, the report said Nigerian firms increased hiring for the fifth straight month, with April marking the strongest job creation in eight months. Although modest, the rise in employment reflects sustained efforts by businesses to meet growing demand and reduce delivery times.
Companies also ramped up purchasing activity at the fastest pace since February 2022 and accumulated stocks of purchases, aiming to stay ahead of potential supply chain disruptions and order delays.
Despite these efforts, “Backlogs of work increased for the first time in 11 months, as the capacity expansion proved insufficient to fully absorb the rising volume of orders. Some firms cited input shortages and power outages as contributing to project delays.”
Muyiwa Oni, Head Equity Research, West Africa, Stanbic IBTC Bank, said input cost inflation edged higher in April, fueled by elevated raw material prices and naira depreciation. While the pace of price increases remained among the slowest seen in the past two years, the pressure was notable. Staff costs also rose solidly during the month.
“As firms passed on higher input costs to customers, output prices climbed at a slightly stronger rate than in March, signaling a mild pickup in consumer-facing inflation,” he added.
Nigeria’s inflation rate climbed to 24.23 percent in March, marking the first uptick since the recent rebasing and defying analysts’ expectations of a slowdown. The latest Consumer Price Index (CPI) data by the National Bureau of Statistics (NBS) shows a notable rise from February’s figure of 23.18 percent.
