---
title: "Nigeria Private Sector Activity Slips Back Into Contraction"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/274494553.md"
description: "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."
datetime: "2026-02-02T09:34:32.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/274494553.md)
  - [en](https://longbridge.com/en/news/274494553.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/274494553.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/274494553.md) | [繁體中文](https://longbridge.com/zh-HK/news/274494553.md)


# Nigeria Private Sector Activity Slips Back Into Contraction

The Stanbic IBTC Bank Nigeria PMI fell to 49.7 in January 2026 from 53.5 in December, dipping below the 50-point mark and signaling broadly weaker business conditions after more than a year of expansion.

New orders stagnated following a 14-month growth streak, limiting output to only marginal gains as demand softened at the start of the year.

Purchasing activity and input stocks also increased at slower rates, especially in wholesale and retail, while agriculture, manufacturing, and services still recorded modest growth.

Employment continued to edge higher for an eighth straight month, helping firms reduce backlogs.

On the price front, cost pressures intensified.

Purchase prices and staff costs both rose more quickly, prompting companies to lift selling prices at the fastest pace in four months, though inflation remained mild compared with post-pandemic peaks.

Despite the slowdown, companies remained cautiously optimistic, expecting demand and activity to recover in the months ahead.

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