Nigeria’s private sector experienced its most significant job growth in nearly two years as the third quarter of 2025 concluded, according to the latest Stanbic IBTC Purchasing Managers’ Index (PMI) released on Wednesday.
The PMI report highlighted a sustained increase in business activity and new orders, which fueled the rapid pace of job creation. Easing inflationary pressures boosted business confidence, prompting companies to expand their workforce to meet rising demand. Notably, the report indicated that input costs for businesses rose at the slowest rate in over five years, further supporting operational growth.
The PMI, which measures the health of the private sector, remained above the 50.0 threshold for the tenth consecutive month, registering at 53.4 in September, down slightly from 54.2 in August. This figure reflects a solid improvement in business conditions despite a modest slowdown. The report noted a marked increase in new orders, driven by stronger customer demand and the introduction of new products. However, the pace of new order growth softened to its lowest level in three months.
The expansion in new orders led to a significant uptick in business activity across all four major sectors covered by the PMI. To accommodate higher output demands, firms increased their staffing levels at the fastest rate since October 2023. Additionally, businesses ramped up purchasing activities, resulting in a buildup of inventories.
Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank, commented on the findings: “The Nigerian private sector closed the third quarter on a strong note, despite a slight moderation in growth momentum compared to August. The sustained rise in output and new orders, supported by improved material availability and customer demand, enabled businesses to expand operations and introduce new products.”
Oni further noted that Nigeria’s economy grew by 4.23% year-on-year in Q2 2025, up from 3.13% in Q1 2025, resulting in a first-half GDP growth of 3.69%, compared to 2.88% in the same period of 2024. “With declining inflation and potential interest rate reductions, the non-oil sector is poised for continued growth into 2026, supporting stronger demand and private investment,” he added.
