LAGOS – Nigeria’s private sector sustained its growth momentum in June 2026, marking the fifth consecutive month of expansion as strong customer demand and new product offerings continued to drive business activity.
The latest Stanbic IBTC Bank Purchasing Managers’ Index (PMI) released Wednesday showed the headline index moderated to 53.4 in June, down from the nine-month high of 54.1 recorded in May.
A reading above the 50.0 no-change mark indicates economic expansion, signaling that while the pace of business growth slowed at the end of the second quarter, overall conditions remained positive.
Business activity expanded across agriculture, services, and wholesale and retail segments. However, the manufacturing sector bucked the trend, slipping into contraction territory as the sole underperforming sector during the month.
The moderation follows recent macroeconomic headwinds, including persistent energy costs linked to Middle East tensions, alongside logistical challenges triggered by poor road conditions that extended vendor delivery times for the first time in a year.
Despite the softer growth, companies aggressively ramped up capacity to tackle rising backlogs. Employment expanded for the 13th consecutive month, hitting its fastest pace of job creation since February.
Operating expenses remained heavily pressured by high fuel and raw material prices. Although purchase-price inflation eased to a four-month low, firms actively raised selling prices to pass these costs onto consumers.
Optimism regarding the next 12 months surged to a one-year high. Firms expressed deep confidence in future output, anchored by robust advertising efforts, aggressive market expansion plans, and strategic input stockpiling.
Stanbic IBTC analysts noted that the second-quarter PMI readings imply a 3.94% year-on-year GDP growth rate for Q2. This represents a modest acceleration from the 3.89% growth rate officially recorded in Q1.
The bank maintained its full-year 2026 GDP growth forecast at 4.1%. This projection is heavily supported by a projected 4.11% expansion in the non-oil sector, up from 3.71% in 2025.
