Nigeria’s private sector sustained its growth momentum in June 2026, marking the fifth consecutive month of expansion as stronger customer demand and new product offerings continued to support business activity.
According to the latest Stanbic IBTC Purchasing Managers’ Index (PMI), the headline index eased slightly to 53.4 in June from 54.1 in May. Despite the moderation, the reading remained comfortably above the crucial 50.0 threshold, signalling that business conditions continued to improve at the end of the second quarter.
The report highlighted that improving demand drove further increases in output, new orders, and employment across most sectors. Business activity expanded in three of the four sectors surveyed, with only manufacturing recording a contraction. Companies also raised staffing levels for the 13th consecutive month, while purchasing activity and inventories increased in response to higher workloads and positive growth expectations.
Business confidence strengthened to its highest level since June 2025, bolstered by expansion plans, advertising efforts, and improved inventory positions.
Commenting on the findings, Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank, said the data shows Nigeria’s economy maintained positive momentum during the second quarter despite a slowdown in the pace of expansion.
“Although the rate of growth slowed in June compared to May, Nigeria’s private sector witnessed an increase in output at the end of Q2 2026 as higher demand and new product development supported an increase in sales volume for companies,” Oni stated. “This rising demand led to higher workloads, thereby ensuring the private sector hired new staff across three of the four sectors monitored by the survey besides agriculture.”
He added that the PMI reading for the quarter aligns with an expected 3.94 per cent year-on-year GDP growth in Q2 2026, up from 3.89 per cent in Q1. Stanbic IBTC maintains its full-year 2026 GDP growth forecast at 4.1 per cent, though risks remain from insecurity, exchange rate pressures, adverse weather conditions, higher fertiliser prices, and a volatile global environment.
Input costs continued to rise due to elevated fuel, transportation, and raw material prices. However, inflationary pressures were less severe than in previous periods. Purchase price inflation eased to a four-month low, while businesses passed on part of the higher costs to customers through increased selling prices. Persistent challenges such as electricity shortages, poor road conditions, and supplier delays contributed to rising backlogs of work.
Despite these pressures, firms remained optimistic about the outlook for the next 12 months.
The Stanbic IBTC PMI is a closely watched indicator of business activity in Nigeria’s non-oil economy. A reading above 50.0 points to improving conditions, while a figure below 50.0 signals contraction.
