Nigeria’s private sector recorded slower growth in March 2026, as escalating fuel costs intensified inflationary pressures across key industries, according to the latest Purchasing Managers’ Index (PMI) data.
The headline PMI, compiled by Stanbic IBTC Bank, stood at 51.9 in March, down from 53.2 in February, but remained above the 50.0 threshold, indicating continued expansion in business activity despite the slowdown.
The report showed that while overall output growth was modest, underlying demand conditions remained strong, supporting a sustained rise in new orders across the private sector. Businesses also continued to expand employment levels and increase purchasing activity in response to growing demand.
Brandspur Banking News Desk reports that inflationary pressures strengthened during the period, driven largely by higher fuel costs and ongoing energy supply challenges, which pushed input prices up at the fastest rate recorded since January 2025.
Selling prices also rose significantly as firms passed on increased costs to customers, with inflation accelerating across all monitored sectors including manufacturing, agriculture, wholesale and retail, and services.
Despite the cost pressures, businesses maintained a positive outlook for future activity, supported by expectations of increased investment, product expansion, and promotional efforts aimed at sustaining demand growth.
The report noted that employment continued to grow for the tenth consecutive month, although at a slower pace compared to February, reflecting cautious hiring amid rising operational costs.
Sector performance varied, with agriculture and wholesale & retail recording growth in activity, while manufacturing and services experienced contractions, partly due to fuel-related cost constraints and power supply issues.
Input purchasing increased as firms sought to meet rising demand, though inventory growth remained modest. Suppliers’ delivery times improved overall, although some disruptions were reported due to transportation and fuel-related challenges.
The PMI findings suggest that Nigeria’s economy remains on a growth path, with analysts linking the data to broader macroeconomic projections that indicate continued expansion driven by the non-oil sector, particularly services.
However, external risks, including global geopolitical tensions and persistent energy cost volatility, continue to pose potential headwinds that could influence inflation trends, interest rates, and overall business sentiment in the months ahead.
