Nigeria Private Sector Activity Slips Back Into Contraction

The Stanbic IBTC Bank Nigeria PMI dropped to 49.7 in January 2026, indicating a return to contraction after over a year of growth. New orders stagnated, limiting output gains as demand softened. Purchasing activity and input stocks increased at slower rates, while agriculture, manufacturing, and services showed modest growth. Employment rose for the eighth month, helping reduce backlogs. Cost pressures intensified, leading to increased selling prices, although inflation remained mild. Companies are cautiously optimistic about future demand and activity recovery.