Nigeria's Private Sector Grows Amid Rising Costs

In October 2026, Nigeria's private sector experienced its fifth consecutive month of expansion, with the Central Bank of Nigeria's (CBN) Purchasing Managers' Index (PMI) rising to 53.2 points from 53.0 points in September. This indicates ongoing improvement in business activities, although increasing input and output prices are raising concerns about the sustainability of this recovery.

The composite output index increased to 54.6 points, and the employment index rose to 53.2 points, reflecting stronger production and recruitment activities. However, new orders decreased to 52.8 points, and raw materials inventory slightly declined to 51.9 points.

Agriculture remained the strongest-performing sector, with 27 months of continuous growth, while industry recorded its third consecutive month of expansion, with cement manufacturing leading at 60.2 points. Muyiwa Oni, Head of Equity Research at Stanbic IBTC Bank (NGX: STANBIC), noted that rising fuel and transportation costs are significant contributors to increased operating expenses for Nigerian businesses.