Nigeria'sprivate sector expands as PMI hits 53.2 in February
Nigeria's private sector expanded in February for the first time since January 2025, with the Stanbic IBTC Bank PMI rising to 53.2 from 49.7 in January. This marks the first monthly improvement since December 2024, signaling renewed business confidence after a brief contraction. The PMI, compiled by S&P Global and endorsed by the National Bureau of Statistics, indicates expansion when above 50.0. Key drivers include stronger new orders, improved customer demand, and better product affordability. All four monitored sectors—wholesale/retail, manufacturing, construction, and services—grew, with retail returning to expansion after January's contraction. Employment rose for the ninth consecutive month, though backlogs increased due to delayed payments and supply constraints. Inflation eased as the naira strengthened below N1,400 per dollar, moderating price pressures. Stanbic IBTC projects 3.86% Q1 2026 GDP growth and 4.1% full-year growth, supported by infrastructure spending and refinery developments. Should investors consider expanding operations given this positive PMI trend?