Nigeria Private Sector Grows in June but Manufacturing Output Falls

Nigeria's private sector recorded a solid increase in business activity during June 2026, according to the Stanbic IBTC PMI report, even as manufacturing output declined. AllAfrica reported that the headline PMI stood at 53.4, down from 54.1 in May but still above the 50.0 threshold that signals expansion.

Business activity expanded across three of the four broad sectors tracked by the survey, with manufacturing the exception.

The report noted that the June rise in private-sector output was solid yet slower than the increase recorded in May, supported by stronger client demand, rising customer numbers and new branch openings. Employment in the private sector rose for the 13th straight month through June.

The increase was slight but marked the sharpest pace since February, with hiring occurring in three of the four monitored sectors except agriculture.

Purchasing activity increased markedly in June at the same rate as in May, extending a 19-month streak of growth in input buying. More than 41 percent of respondents reported higher input costs, and the overall rate of input cost inflation remained substantial and edged faster than in May. Manufacturing recorded the strongest pace of input-price inflation among sectors.

Purchase-cost inflation eased for the third successive month and reached its softest level since February. Head of Equity Research West Africa at Stanbic IBTC Bank, Mr. Muyiwa Oni, stated that business confidence rose to a 12-month high.

Firms cited the ability to secure new stocks, expansion plans and advertising efforts as reasons they expect output growth over the next year.