Nigeria's PMI Drops Below 50, Signaling Economic Slowdown in 2026

Nigeria's economy faces a slowdown as the Purchasing Managers' Index (PMI) drops below 50, signaling a contraction in business activity. Stanbic IBTC Bank's report reveals a decline in new orders, particularly in the wholesale and retail sectors, while agriculture, manufacturing, and services continue to grow.

Despite challenges such as rising input costs and inflation, companies are optimistic about future growth in 2026. Muyiwa Oni, Head of Equity Research at Stanbic IBTC Bank, notes the impact of weak demand at the start of the year but remains positive about the economy's growth prospects, expecting a 4.1% year-on-year growth in 2026.

The report highlights the need for increased demand in the coming months, emphasizing the potential for infrastructure development, investment attraction, and stable exchange rates to support economic growth.