Report: Manufacturing, Services Led other Sectors in Business Expansion

Dike Onwuamaeze

The Purchasing Managers’ Index (PMI) of Stanbic IBTC Bank has revealed that the manufacturing and services sectors of the Nigerian economy led other sectors of the Nigerian economy in business expansion in November.

The report stated that the 53.6 point headline figure in November “signalled a solid strengthening in the health of the private sector, and one that was only slightly less pronounced than seen in October’s 54.0.”

According to Stanbic IBTC, headline figures above 50.0 signalled improvement in business conditions on the previous month, while readings below 50.0 showed deterioration.

Commenting on the PMI report, the Head of Equity Research West Africa at Stanbic IBTC Bank, Mr. Muyiwa Oni, said, “Output increased across all four broad sectors, namely agriculture, manufacturing, services, wholesale and retail, that were covered by the survey, led by manufacturing and services. Both manufacturing and services are likely to see higher growth in 2025 compared to 2024 levels, based on the results from the PMI surveys so far this year. Elsewhere, the government has been visible in infrastructure, livestock development, easing trade constraints, and attracting investments in oil & gas and manufacturing.”

Oni added, “Aside from that, the Dangote refinery is expected to continue to have forward-linkage impact on other sectors of the economy.  Also, likely lower interest rates in line with lower inflation and exchange rate stabilisation should support private consumption and business investments in 2026.

“Because of these factors, we see more sectors contributing to real GDP growth rate in 2026 compared to 2025, likely translating to an improvement in the quality of lives of the citizens relative to 2025. We still see the Nigerian economy growing by 4.0 per cent in 2025.”

Oni said “Nigeria’s headline PMI remained in the expansionary territory in November but moderated when compared to October. Nonetheless, the strong output continues to reflect easing inflationary pressures which is helping to support higher sales for businesses who are now launching new products and securing more customers. Hence, new orders rose to a three-month high of 56.9 points from 56.3 points in October. More positively, new orders have now increased in each of the past 13 months.”

The report said that November data also “pointed to a further increase in employment in the Nigerian private sector, thereby extending the current sequence of job creation to six months.

“Panellists reportedly hired additional staff in order to help with new orders and projects. That said, the latest rise was only marginal and the weakest since June. Employment increased in three of the four monitored sectors, the exception being wholesale and retail.”

It also stated that the rate of overall input cost inflation eased to the slowest in almost five years during November.

“The easing of inflation reflected weaker rises in both purchase prices and staff costs. Rates of increase softened across all four broad sectors. Although purchase costs continued to increase markedly in November, the pace of inflation eased for the sixth time in the past seven months and was the lowest since February 2020. Those respondents that signalled a rise in purchase prices linked this to higher costs for raw materials and transportation,” the report said.