Nigeria’s private sector continued to grow in July 2026, supported by stronger customer demand and a further increase in new business, although the pace of expansion slowed compared with the previous month.
At the same time, businesses experienced some relief from rising input costs, with purchase cost inflation easing to its lowest level in five months.
According to the latest Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) compiled by S&P Global, the headline PMI registered 52.5 in July, down from 53.4 recorded in June.
What the data is saying
Although growth moderated, the July PMI indicates that private sector activity remained in expansion territory.
Key highlights include:
- The headline PMI declined to 52.5 in July from 53.4 in June.
- Despite the decline, the index remained above the 50.0 benchmark, signalling continued expansion.
- July marked the sixth consecutive month of improving business conditions.
- Stronger customer demand continued to drive growth in new orders.
- Purchase cost inflation eased to its lowest level in five months, indicating softer cost pressures for businesses.
The data suggests that business activity remains resilient even as the pace of growth becomes more moderate.
More insights
A PMI reading above 50.0 indicates expansion in private sector activity, while a reading below 50.0 signals contraction.
Although July’s reading was the weakest in three months, it still points to a healthy level of business confidence and economic activity.
The moderation in purchase cost inflation is particularly significant, as lower input cost pressures can improve profit margins, reduce the need for aggressive price increases and support future business investment.
The continued increase in new orders also suggests that underlying demand remains relatively strong, providing businesses with opportunities to sustain production and employment despite broader macroeconomic challenges.
What you should know
The latest PMI data points to continued resilience in Nigeria’s private sector.
Key highlights include:
- July PMI: 52.5.
- June PMI: 53.4.
- Business conditions improved for the sixth consecutive month.
- New orders continued to increase on the back of stronger customer demand.
- Purchase cost inflation slowed to its lowest level in five months, providing some relief for businesses.
While the pace of expansion softened in July, the PMI suggests that Nigeria’s private sector remains on a positive growth trajectory. Continued improvements in demand alongside easing cost pressures could support business activity in the coming months, although firms will continue to monitor inflation, exchange rate movements and broader macroeconomic conditions that may influence future growth.
