Business Confidence in Nigeria Hits 14-Month High

|By Adejumo Adekunle-

• Surge in new orders fuels economic optimism
• Input cost inflation drops to lowest level in nearly a year

Business confidence in Nigeria soared to its highest level in 14 months, driven by rising demand for goods and services, according to the latest Purchasing Managers’ Index (PMI) released Tuesday by Stanbic IBTC.

The report showed that the headline PMI jumped to 54.3 in March, up from 53.7 in February—its highest since January 2024. A PMI reading above 50.0 indicates an expansion in business activity, while a figure below that threshold signals contraction.

“March’s uptick reflects a solid improvement in business conditions for the fourth consecutive month, driven by a sharp increase in new orders—the fastest in 14 months,” the report stated.

Stronger domestic demand fueled private sector growth, boosting output across major industries, including manufacturing, trade, and real estate. The surge in new orders signals rising economic optimism, with businesses receiving more requests and expecting sustained expansion.

Another key highlight of the report was the decline in input cost inflation, which fell to its lowest level since May 2023. The easing of cost pressures aligns with Nigeria’s slowing inflation rate, as recent data from the National Bureau of Statistics (NBS) showed headline inflation dipped to 23.18% in February, down from 24.48% in January 2025.

The latest PMI data underscores growing business confidence, reflecting a more stable economic outlook as demand strengthens and inflationary pressures ease.