Nigeria’s private sector sustained its recovery in June, recording a fifth consecutive month of expansion as stronger customer demand, rising new orders and fresh product offerings continued to boost business activity.

This is according to the latest Stanbic IBTC Purchasing Managers’ Index (PMI) released yesterday.

The survey indicated that businesses also continued to increase output and employment during the month, while confidence about the year ahead rose to its highest level since June 2025 as firms looked to expand operations, strengthen inventories and step up advertising.

The headline PMI stood at 53.4 in June, down from 54.1 in May but remaining well above the 50-point mark that separates expansion from contraction, signalling that business conditions continued to improve at the end of the second quarter.

Growth was recorded across three of the four sectors covered by the survey, with manufacturing being the only sector to contract.

Companies also increased staffing levels for the 13th consecutive month as stronger demand translated into higher workloads. Purchasing activity remained strong, while firms built up inventories in anticipation of further increases in customer demand.

Commenting on the report, Head of Equity Research, West Africa at Stanbic IBTC Bank, Muyiwa Oni, said the latest survey suggests the economy maintained positive momentum through the second quarter despite a slower pace of expansion than in May.

“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 said.

He added that stronger demand encouraged businesses to expand their workforce.

According to Oni, the PMI reading is consistent with an estimated 3.94 per cent year-on-year growth in gross domestic product (GDP) for the second quarter of 2026, compared with 3.89 per cent recorded in the first quarter.

Despite the continued expansion, businesses faced persistent cost and operational pressures during the month. The report showed that input costs rose sharply on the back of higher fuel, transportation and raw material prices, although purchase price inflation eased to its lowest level in four months. Many firms also increased selling prices to offset part of the higher operating costs.

The survey further showed that outstanding business continued to accumulate as customer payment delays, electricity supply challenges and longer supplier delivery times, largely linked to poor road conditions, affected operations.

Even so, firms remained optimistic about business prospects over the next 12 months. The report attributed the improved confidence to expansion plans, stronger marketing efforts and improved inventory positions, with overall business sentiment climbing to its highest level in a year.