Agriculture and Manufacturing Drive Nigeria's Output Growth

In August, agriculture and manufacturing sectors in Nigeria led output expansion as reflected in the Purchasing Managers’ Index (PMI) from Stanbic IBTC, which increased to 54.3 from 52.5 in July. This rise signaled a significant strengthening in the health of the Nigerian private sector, marking the largest improvement in over two-and-a-half years.

The report indicated that output increased across all four sectors surveyed, with notable growth in agriculture and manufacturing. Business activity has now risen for 21 consecutive months, with the latest expansion being the fastest since May.

Factors contributing to this rise included new product introductions and increased customer demand. However, input costs continued to rise sharply, leading companies to increase their selling prices.

Manufacturing experienced the most significant increase in input prices, while wages rose at the slowest pace in nine months. Mr. Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank, noted that companies are optimistic about future growth, planning to hire more workers and expand operations.