Nigeria's Private Sector Contracts as PMI Drops to 49.7 in January 2026

Nigeria's private sector witnessed a contraction as the Purchasing Managers' Index (PMI) dropped to 49.7 in January 2026, down from 53.5 in December 2025. This decline marked the first time since the survey began in 2014 that the PMI fell below the 50-point threshold, indicating deteriorating business conditions.

The report by Stanbic IBTC Bank revealed a broad stagnation in new orders, with weak demand leading to minimal growth in new business volumes. While output increased marginally in January, sectors like wholesale, retail, agriculture, and manufacturing recorded contractions.

Despite a rise in employment for the eighth consecutive month, job creation remained modest. The report also highlighted increasing cost pressures, with input prices rising sharply due to higher raw material costs and staff expenses.

Business sentiment weakened, although firms expressed optimism about future output growth and expansion plans.