Nigeria’s Economic Growth Shows Signs of Weakness: Business Confidence Slumps

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Nigeria’s business confidence has taken a hit, despite a rise in the headline Purchasing Managers’ Index (PMI) to 54.3 in March 2025, according to the latest Stanbic IBTC Bank PMI report. The PMI report shows that although input cost inflation slowed to its weakest pace in 10 months, businesses are still concerned about the business environment.

“The softening inflationary pressures are improving domestic demand conditions, supporting an overall improvement in private sector activity,” said Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank.

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The report highlights that private sector activity strengthened for the fourth consecutive month, with the headline PMI settling higher at 54.3 points in March from 53.7 points in February, its highest point since January 2024 (54.5 points).

Firms continued to experience notable rises in both purchase prices and staff costs, but at a slower pace compared to previous months. The reduction in inflationary pressure allowed companies to ease the rate at which they increased selling prices, marking the third successive month of softer output price inflation.

The private sector witnessed a marked increase in output and new orders, with the rate of growth in new orders accelerating to its highest level in 14 months. All four monitored sectors – agriculture, manufacturing, construction, and services – reported improved output levels during the month.

This encouraged firms to expand their workforce, with March marking the fourth consecutive month of job creation. Suppliers’ delivery times continued to shorten, though the improvement was less pronounced compared to the previous month. Businesses attributed this to prompt payments and favourable road conditions.

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