Nigeria’s economic activity showed signs of strengthening in August as new orders in the private sector hit a 12-month high on the back of improved customer demand and the launch of new products.

The latest Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 54.3 in August from 52.5 in July, extending the expansion in private-sector business conditions to seven consecutive months.

The increase in new orders, which companies attributed to stronger customer demand and the launch of new products, prompted firms to significantly raise business activity during the month.

The latest development came as the National Bureau of Statistics (NBS) reported that the economy grew by 4.43 per cent in real terms in the second quarter of 2026, up from 4.23 per cent in the corresponding period of 2025.

The GDP growth was supported by agriculture and services, which expanded by 4.39 per cent and 4.60 per cent respectively. The non-oil sector also strengthened, growing by 4.31 per cent year-on-year, compared with 3.64 per cent in the same quarter of 2025.

The PMI report showed that output in the private sector increased for the 21st consecutive month, with all four broad sectors covered by the survey recording growth. Agriculture and manufacturing recorded particularly strong expansions, while improved availability of materials also supported the increase in activity.

Commenting on the latest PMI figures, Head of Equity Research, West Africa, at Stanbic IBTC Bank, Muyiwa Oni, said the continued expansion reflected improved demand and increased business opportunities among companies.

“Private sector activity in Nigeria was in an expansionary territory for the seventh consecutive month, rising to 54.3 points in August from 52.5 points recorded in July,” Oni said.

The stronger inflow of new orders also supported a 15th consecutive month of job creation, although employment growth remained modest compared with the sharper increases in output and new orders. Wholesale and retail businesses recorded a decline in employment, while staffing levels increased in the other sectors.

Oni said better availability of materials had also emerged as a factor supporting growth, while companies remained positive about future output, with plans to increase hiring, expand into new locations and export to other countries.

“Companies also remain positive on future output as they plan to hire more workers, export to other countries and expand into new locations amid an expectation of higher customer numbers,” he said.

The stronger business activity also helped firms manage their workloads, with backlogs of work declining for the first time in seven months. Purchasing activity expanded strongly in August, reaching its fastest pace since last November, while inventory building rose to a nine-month high.

However, the improvement in activity was accompanied by renewed cost pressures. Purchase cost inflation increased during the month, driven largely by higher fuel and transportation expenses as well as rising raw material prices. Staff cost inflation, in contrast, eased to its weakest level in nine months.

Companies responded by increasing their charges, causing output price inflation to accelerate in August. Agriculture recorded the fastest increase in selling prices among the four monitored sectors.

Oni said input prices had continued to rise because of higher transportation and raw material costs, while output prices also maintained an upward trend.

The PMI report also showed that suppliers delivered goods faster for the second consecutive month, with respondents citing prompt payments, good supplier relationships, competition among vendors and improved logistics as factors behind the shorter delivery times.

Business confidence about output over the next 12 months remained positive, although it fell to a three-month low. Companies cited planned expansion into new locations, increased exports, higher employment and expectations of more customers as reasons for their optimism.

Oni said the PMI readings so far in the third quarter continued to point to strong economic growth, which he said could help sustain a 4.1 per cent GDP growth rate for the full year.

He projected stronger performance from the non-oil sector, while manufacturing was expected to receive the biggest boost among the three broad sectors of the economy.