Nigeria's PMI Rises to 53.2, Indicating Sector Growth

In February 2024, Nigeria's private sector experienced a resurgence in growth, as indicated by the Purchasing Managers' Index (PMI) which rose to 53.2, signaling a recovery in business conditions after a decline in January. The PMI, compiled by S&P Global and endorsed by the National Bureau of Statistics, reflects a solid monthly recovery in the private sector, with improvements noted since December 2023, except for the January dip.

The rebound was primarily driven by a renewed increase in new orders, which supported improved customer demand and the introduction of new products. Companies reported a rise in output at the fastest pace in four months, responding to higher order volumes and expanding purchasing activity.

Additionally, inventory levels were notably maintained, and supplier delivery times improved. Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank, noted that stronger customer demand and competitive pricing contributed to this positive trend.

The appreciation of the Naira also played a role in alleviating inflationary pressures during the month.