Nigeria's Manufacturing Output Declines Amid Economic Growth

In June 2026, Nigeria's manufacturing sector recorded a decrease in output, as reported by the Stanbic IBTC Purchasing Managers' Index (PMI). This decline occurred despite improvements in demand that supported growth in other sectors of the economy.

The PMI indicated that business activity in Nigeria's private sector expanded for the fifth consecutive month, with a solid rise in activity, although at a slower pace than in May. The report highlighted that the manufacturing sector was the only area not experiencing growth, with input costs rising significantly.

The overall PMI reading was 53.4, down from 54.1 in May, indicating continued improvement in business conditions. Mr.

Muyiwa Oni from Stanbic IBTC Bank noted that the growth rate slowed compared to May, but the private sector still saw increased output and hiring due to higher demand and new product development. Input prices continued to rise, influenced by costs related to fuel and raw materials, impacting the pricing strategies of companies.