Nigeria's private sector continued its upward trajectory in March, marking the fourth consecutive month of job growth, according to the Stanbic IBTC Bank Nigeria Purchasing Managers' Index (PMI) report released on Wednesday.
The report highlighted that employment growth accelerated to its fastest pace since August 2024, with firms across all key sectors—including manufacturing, agriculture, mining, construction, wholesale, retail, and services—increasing their workforce. The manufacturing sector led the expansion.
The PMI report noted that output, new orders, and employment levels all showed stronger growth than in February, driven by an improving demand climate. New orders rose at their fastest pace in 14 months, fueling a sharp increase in business activity across all sectors.
With headline PMI rising to 54.3 in March from 53.7 in February, business conditions in the private sector were the strongest since the beginning of 2024. The report also suggested that Nigeria's non-oil sector could see a 3.9% year-on-year growth in Q1 2025, signaling further improvements in economic conditions.
Companies responded to increasing demand and rising output needs by hiring more staff and boosting procurement activities. Employment growth in March was the most pronounced in seven months, with many firms also increasing inventory levels to prepare for future business expansion.
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Despite ongoing economic challenges, the report indicated that input costs rose at the slowest pace since May 2023, leading to weaker output price inflation for the third consecutive month. This price moderation allowed businesses to stockpile inputs and improve operational efficiency.
Although business confidence dipped to a three-month low, some firms expressed optimism, citing planned advertising, business investments, and new branch openings as growth drivers.
Commenting on the report, Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank, stated:
As Nigeria navigates its economic recovery, the private sector's sustained job growth and improving business conditions provide a positive outlook for employment and economic stability in the months ahead.
