Business confidence rises to 14-month high amid inflation decline in Nigeria

Business confidence in Nigeria increased to the highest level in 14 months amid rising demand for their goods and services.

This is according to Stanbic IBTC’s latest Purchasing Managers’ Index (PMI), released Tuesday.

The report showed that the headline index climbed to 54.3 in March, up from 53.7 in February— its highest level since January 2024.

PMI above 50.0 signals an expansion in business activity, while a reading below that threshold indicates a contraction.

“March’s uptick reflects a solid improvement in business conditions for the fourth consecutive month, driven by a sharp increase in new orders—the fastest in 14 months,” the report noted.

The report added that the private sector’s performance was pushed by stronger domestic demand, resulting in expanded output across all major sectors, including manufacturing, trade, and real estate.

Rising new orders in a PMI signal increased demand and optimism in the economy, suggesting businesses are receiving more orders and anticipating future growth.

Also, one of the most notable findings in the report was the decline in input cost inflation, which reached its lowest level since May 2023.

The development comes amid declining inflationary pressures in Nigeria.

Recall that the National Bureau of Statistics data showed that Nigeria’s headline inflation decreased to 23.18 percent in February from 24.48 percent in January 2025.