By Peter Egwuatu

A relatively stable exchange rate and moderation in petroleum product prices have contributed significantly to supporting disinflation. The development has pushed up the Purchasing Managers Index, PMI, to 53.7 in February from 52.0 in January 2025.

According to the Stanbic IBTC PMI report released yesterday, the February data pointed to improved growth momentum in the Nigerian private sector.

The report stated: “Rates of expansion in output, new orders and purchasing activity, all quickened as demand picked up and inflationary pressures showed signs of moderating”.

PMI readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show deterioration.

Commenting on the PMI, Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank, said: “Activity in Nigeria’s private sector improved for the third consecutive month with the latest PMI reading of 53.7 points in February at its highest level since January 2024 (54.5 points).
“A relatively stable exchange rate and moderation in fuel prices are supporting the ease in inflationary pressures, which in turn helped strengthen consumer demand in the month.

“Thus, new orders increased for the fourth consecutive month, with survey participants noting a greater desire on the part of customers to commit to new projects. In line with the increase in new orders, output also increased sharply in February as the output index settled at 56.9 points from 53.7 points in January. “That said, input price inflation eased further in February to its weakest level since April 2024. However, about 39.0% of respondents increased their output prices in the month, with less than 1.0% lowering their charges”.