Nigerian Economy Shows Mixed Signals in January 2026: Stanbic IBTC Bank Report

In January 2026, Nigeria's economy witnessed growth in the agriculture, manufacturing, and services sectors, despite a decline in overall output. Stanbic IBTC Bank Nigeria's PMI report revealed a decrease in economic activity to 49.7% from 53.5% in December 2025.

The report attributed this decline to higher raw material costs, pushing the inflation rate to a three-month high. While the PMI reading remained above 50.0, signaling improved business conditions, it dipped below the neutral threshold.

The Nigerian private sector faced challenges with stagnant new orders and weak demand, leading to a muted start in 2026. Muyiwa Oni, Head of Equities Research at Stanbic IBTC Bank, expressed concerns over the PMI falling below the psychological threshold of 50 points, indicating deeper issues.

Despite the challenges, Oni forecasted a 4.1% year-on-year economic growth for Nigeria in 2026, expecting a demand pickup in the subsequent months.