Nigerian Private Sector Growth Rebounds in February 2023

In February 2023, Nigeria's private sector experienced a return to growth, as indicated by the headline Purchasing Managers' Index (PMI) rising to 53.2 from 49.7 in January, surpassing the 50.0 threshold that signals improvement in business conditions. The report, released by Stanbic IBTC Bank, highlighted a solid monthly recovery following a brief dip at the start of the year.

Key factors contributing to this growth included a resurgence in new orders, which rose to 55.5 from 49.9 in January, and a rebound in the wholesale and retail sectors. Employment levels increased for the ninth consecutive month, although a backlog of work grew at the sharpest rate since May 2020 due to delays in customer payments and material supply challenges.

Inflationary pressures showed signs of easing, with purchasing cost inflation slowing to its weakest level in six years, partly due to the appreciation of the naira. Overall, the report indicates a positive outlook for the Nigerian economy, projecting a real GDP growth rate of 4.1% year-on-year for 2026.