Nigeria's private sector expanded for the third consecutive month in April, with the Purchasing Managers' Index rising to 52.4 from 51.9 in March, according to data from Stanbic IBTC Bank released this week.
The headline reading stayed above the 50-point threshold that signals economic growth. Manufacturing, agriculture and trade all recorded increased activity during the month, though the services sector contracted. Companies posted their 17th straight month of growing business activity, with new orders expanding at a pace slightly faster than March's figures.
But higher fuel costs caused by the military conflict in the Middle East pushed up prices across the economy and dampened business expansion plans. Half of all surveyed companies reported rising input prices in April, with purchase costs climbing sharply as raw material expenses and fuel bills spiked. Agriculture and services sectors felt the steepest cost increases.
Muyiwa Oni, head of equity research for West Africa at Stanbic IBTC, said the improved ordering trends reflected rising customer numbers and stronger demand. "The health of Nigeria's private sector improved in April, remaining above the 50-points growth threshold for the third consecutive month, as new orders increased in line with higher customer numbers and rising demand even as price pressures remain prevalent," he said.
Companies passed these higher costs to customers. More than 43 per cent of surveyed firms raised their selling prices in April, marking the fastest rate of inflation in output charges since December 2024. Some companies also increased staff pay to help workers cope with rising transportation costs linked to higher fuel prices.
Oni noted that business confidence strengthened in April compared to March. Companies planned to expand by opening new branches, building up inventory and entering fresh markets. He said this early-quarter improvement supported expectations of better overall growth in 2026 relative to 2025.
The PMI tracks the health of the private sector through monthly surveys of purchasing managers across Nigeria's economy. A reading above 50 signals growth, while below 50 indicates contraction. The index has now stayed above 50 for three months running, suggesting the Nigerian economy is gaining momentum despite global headwinds.
