Nigeria’s private sector returned to growth in February, as new orders increased and inflationary pressures eased, according to the latest Purchasing Managers’ Index report released by Stanbic IBTC Bank.
The headline PMI rose to 53.2 in February from 49.7 in January, moving above the 50.0 threshold that signals improvement in business conditions. The February reading indicates a solid monthly recovery in the health of the private sector after a brief dip at the start of the year.
The report showed that new orders returned to growth, supported by improved customer demand and better product affordability. Output also regained momentum, rising at the fastest pace in four months.
All four monitored sectors recorded higher activity, with wholesale and retail rebounding after a decline in January. Employment increased for the ninth consecutive month, with staffing levels rising at the fastest pace since October last year.
However, despite continued hiring, backlogs of work grew at the sharpest rate since May 2020. Companies linked the rise in outstanding business to delayed customer payments, staff shortages, material supply challenges and power outages. Firms also expanded purchasing activity and increased inventories in response to stronger demand.
