Despite the global economic challenges orchestrated by the military conflict in Iran, Stanbic IBTC Bank Nigeria’s Purchasing Managers’ Index (PMI) for April 2026 has shown that Nigerian manufacturing, agricultural and trade sectors recorded growth trajectories in in 2026.
The PMI showed improved business condition during the month under review as its headline reading ticked up to 52.4 in April from 51.9 in March, above the 50.0 no-change mark for the third month running, which signalled a solid strengthening in the health of the Nigerian private sector
The report, however, added that the impacts of higher fuel costs as a result of the war in the Middle East were felt again, pushing up prices and reportedly limiting expansions in new orders and business activity.
It said: “Nigerian companies posted a 17th consecutive monthly increase in business activity during April, in line with a further expansion of new orders. The rate of growth was solid and slightly faster than that seen in March, despite some reports from panellists of rising prices impacting output volumes. Three of the four broad sectors (manufacturing, agriculture and trades) covered by the report signalled a rise in activity, the exception being services.”
It stated that after hitting a 14-month high in March, the pace of overall input cost inflation eased slightly in April but remained elevated.
“Half of all respondents noted a rise in their input prices during the month, with underlying data signalling that higher purchase prices were the main driver of overall inflation. Services posted the fastest rise in overall input costs, just ahead of agriculture,” it said.
The report said that rising fuel prices, following the outbreak of war in the Middle East, resulted in a further sharp increase in purchase costs in April, with the rate of inflation broadly in line with that seen in March.
It added that general raw material price increases were also noted by respondents as “agriculture and services registered the steepest rises in purchase costs.”
The report noted that Nigerian companies increased their selling prices in April in response to rises in fuel and raw material costs.
Moreover, the rate of inflation was substantial and the fastest since December 2024.
According to the report, more than 43 per cent of panellists reported a rise in output charges during the month.
Commenting on the PMI’s report, the Head of Equity Research West Africa at Stanbic IBTC Bank, Mr. Muyiwa Oni, said; “The health of Nigeria’s private sector improved in April, remaining above the 50-points growth threshold for the third consecutive month, as new orders increased in line with higher customer numbers and rising demand even as price pressures remain prevalent. Accordingly, the headline PMI increased to 52.4 points in April from 51.9 points seen in March.
“Despite the improvement in new orders, we understand that lingering inflationary pressures limited the pace of expansion. Notably, companies increased their selling prices in April to the highest level since December 2024 in response to rising fuel and raw material costs. Staff costs also increased modestly as some companies increased their staff pay so as to help them with increasing transportation fares.”
Oni added that business expectations also improved in April compared to March as businesses plan to expand their operations through the opening of new branches, stock building, and entry into new markets.
He said: “The improved start of the second quarter of the year by Nigerian businesses continue to support our view of improved growth expectations in 2026 relative to 2025.”
