The Nigerian private sector continued to expand in 2025, according to the Stanbic IBTC Purchasing Manager Index (PMI) report, driven by rising customer demand that boosted new orders, output, and purchasing activity. Employment also grew, although the pace of job creation remained modest.

The December 2025 report noted that “inflationary pressures picked up modestly but remained close to recent lows,” while business confidence strengthened significantly.

The PMI, which measures business conditions, indicated a headline reading of 53.5 in December, slightly down from 53.6 in November. Readings above 50.0 signal improvement, while below 50.0 indicate deterioration. December’s figure marked the thirteenth consecutive month of expansion, broadly in line with the average for the year.

Commenting on the report, Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank, said:

“Headline PMI moderated for the second consecutive month in December but remained firmly in growth territory. The expansion reflects higher customer demand, driving new orders and encouraging companies to increase purchasing activity and inventory levels.”

Oni also highlighted a notable improvement in business confidence, reaching a six-month high, fueled by planned investments in expansion, including new branches and increased product exports.

While input prices rose sharply in December from near five-year lows in November, the inflation rate remained below the 2025 average. The manufacturing sector saw the largest increase in selling prices. Oni attributed the pickup in inflationary pressures to December’s festive spending and the low-base effect from the previous year, estimating month-on-month inflation at 1.44%, translating to a Consumer Price Index (CPI) of 132.34, and year-on-year inflation of 32.34%.