Nigeria's Manufacturing Output Declines Amid Rising Costs

The manufacturing output in Nigeria has experienced a decline as higher fuel costs have slowed growth in the private sector, according to the Purchasing Managers' Index (PMI) report from Stanbic IBTC Bank. The PMI headline figure for March 2026 was 51.9, down from 53.2 in February, indicating a softer growth rate.

Despite this, business activity in the private sector continued to expand, with firms raising output in response to higher new orders. However, the rise in fuel costs has limited growth potential, and ongoing tensions in the Middle East pose downside risks to the growth outlook.

The report noted that input prices rose sharply, marking the fastest pace since January 2025, with inflation affecting all monitored sectors. The Nigerian economy is projected to grow by 4.22% year-on-year in 2026, with the non-oil sector expected to grow by 4.24% year-on-year, driven primarily by services.