Nigeria’s private sector recorded an increase in output at the end of the second quarter of 2026, supported by stronger demand and the launch of new products, according to Stanbic IBTC Bank Nigeria.
The bank’s Head of Equity Research West Africa, Muyiwa Oni, said improving demand conditions helped drive further increases in output and new orders, while rising workloads encouraged firms to expand staffing, raise purchasing activity and build up inventories.
He noted that the headline PMI reading of 53.4 in June, though slightly lower than May’s 54.1, remained above the 50.0 level that signals improvement in business conditions. The survey also showed that the private sector strengthened for the fifth consecutive month.
Oni said business confidence rose to a 12-month high in June, with respondents citing stock availability, expansion plans and advertising efforts as reasons for expecting stronger output over the next year. He added that employment increased for the thirteenth straight month, although the pace of job creation remained modest.
The report also showed that input costs and selling prices continued to rise sharply, driven by higher fuel, raw material and transportation expenses. However, the rate of input inflation eased to a four-month low, while backlogs of work increased because of payment delays, power supply problems and longer delivery times.
Stanbic IBTC said the June PMI reading is consistent with an estimated 3.94 percent year-on-year GDP growth in Q2 2026, slightly above the 3.89 percent recorded in Q1. It kept its 2026 growth forecast at 4.1 percent, while warning that insecurity, exchange rate pressure, extreme weather, higher fertilizer prices and global uncertainty could affect the outlook.