Tony Chukwunyem 
The country’s Purchasing Managers’ Index (PMI) eased to 53.5 in December 2025 from 53.6 in the preceding month, but still, “signalling a solid monthly improvement in business conditions as 2025 drew to a close,” according to Stanbic IBTC Bank’s latest Nigeria PMI report.
The report said that the strengthening in operating conditions in December was the thirteenth in as many months, and broadly in line with the average for 2025 as a whole, adding that: “Growth in December emanated from an improvement in customer demand which supported a marked monthly increase in new orders.”
Companies also expanded output sharply, with all four broad categories recording an increase in output rise in December, led by agriculture, according to the report.
It further said that stronger customer demand also encouraged firms to expand their purchasing activity and inventory holdings, adding that although employment also increased during the period , it grew at the slowest pace since June 2025.
In addition, the report stated: “For the second month running, companies noted a slight rise in backlogs of work. Delays completing projects were reportedly caused by material shortages and power supply issues.
“Meanwhile, suppliers’ delivery times shortened but to the least extent in six months amid reports of poor road conditions. Those firms that registered shorter lead times linked this to prompt payments and a lack of traffic. “Higher raw material prices led to a marked rise in purchase costs.
The pace of inflation quickened but remained among the weakest in the past six years. Staff costs also increased at a faster pace as firms paid employees for additional work.”
It also that although companies responded to higher input costs by raising their own selling prices in December, thus quickening the pace inflation, the rate of inflation was only slightly stronger than the recent low posted in November.
Noting that manufacturing registered the sharpest rise in charges of the four monitored categories, the report said that, “Nigerian private-sector firms were much more confident in the outlook for business activity at the end of 2025.”
