Nigeria’s private sector has recorded its strongest employment growth in nearly two years, according to the latest Purchasing Managers’ Index (PMI) report released by Stanbic IBTC Bank on Wednesday.
The September 2025 report revealed that firms ramped up hiring in response to robust output expansion and a steady flow of new business orders, as confidence in the business environment improved amid easing inflationary pressures.
The PMI data also indicated that input cost inflation rose at its slowest pace in five and a half years, enabling companies to manage expenses more efficiently while expanding operations.
The headline PMI remained well above the 50.0 mark , the threshold that distinguishes growth from contraction for the tenth consecutive month, confirming a healthy expansion in the private sector.
Although the index eased slightly to 53.4 in September from 54.2 in August, it still signalled a solid improvement in business conditions across the board.
“New business increased markedly in September, driven by better customer demand and the introduction of new products,” the report stated. “All four major sectors recorded output growth.”
To meet rising output needs, companies boosted both employment and purchasing activity. Staffing levels rose at the fastest pace since October 2023, while input buying remained strong, leading to an accumulation of inventory, a clear sign of optimism about future demand.
“Higher output requirements encouraged firms to expand their operating capacity,” the report noted.
Commenting on the findings, Muyiwa Oni, Head of Equity Research, West Africa at Stanbic IBTC Bank, said the quarter ended on a positive note, even though September saw a slight moderation compared to August.
“Output growth remains strong at 56.1 points, and new orders despite easing to 55.4 from August’s 58.3 stayed firmly in growth territory for the 11th straight month,” Oni explained.
He attributed the expansion to improved material availability and strong consumer demand, which also enabled businesses to introduce new products and scale operations.
GDP Forecast Upgraded on Back of Q2 Performance
Backed by stronger-than-expected second-quarter GDP data, Oni announced that Stanbic IBTC has revised Nigeria’s 2025 growth forecast upward from 3.5% to 4.0% year-on-year.
“With Q2 GDP growing by 4.23% from 3.13% in Q1, and H1 averaging 3.69%, the non-oil sector is showing impressive resilience,” Oni noted.
He added that easing inflation, potential interest rate cuts, and reduced exchange rate volatility are expected to support further gains in trade, manufacturing, construction, and real estate.
Based on current data, Stanbic predicts: Oil sector growth of 14.3% year-on-year, Non-oil sector growth of 4.4% year-on-year and Overall Q3 2025 GDP growth of 4.5%.
About the Author
