Nigerian private sector shows signs of recovery in Dec ’24 – PMI

The Nigerian private sector experienced a notable rebound in December 2024, with the Purchasing Managers’ Index (PMI) rising to 52.7, its highest level since January, IBTC Bank and S&P Global showed on Thursday. This marks a return to growth after six months below the 50.0 threshold, signalling improved business conditions.

Key drivers included a surge in new orders, which grew at their fastest pace since May, reflecting heightened consumer demand during the festive season.

This uptick spurred expansions in output, employment, and purchasing activity, ending a five-month contraction.

Growth was recorded across all four monitored sectors, with businesses accumulating stocks for the first time in five months.

However, inflationary pressures remained a challenge. Input prices rose due to currency weakness and higher transportation and fuel costs, prompting firms to increase output prices. Supply chain disruptions persisted, with delivery times improving only marginally.

Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank, noted the festive season’s role in boosting activity but highlighted mixed employment trends. While some firms hired to meet demand, others faced challenges paying wages. Oni projected 3.24 per cent year-on-year GDP growth for the fourth quarter of 2024, supported by improved crude oil production and festive spending.

Looking ahead, businesses expressed cautious optimism, citing hopes for better funding access and improved economic conditions in 2025. However, business confidence remained near historic lows.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser