According to the latest Purchasing Managers’ Index (PMI) report by Stanbic IBTC Bank, Nigeria's private sector rebounded in February, with the headline PMI rising to 53.2, up from 49.7 in January. This shift indicates an improvement in business conditions, as a PMI above 50.0 reflects growth. The boost in the private sector's health is attributed to rising new orders, stronger customer demand, and improved product affordability, signaling a strong recovery following a temporary downturn earlier in the year.

All four sectors monitored showed enhanced activity levels, particularly in wholesale and retail, which experienced a significant rebound after previous declines. The increase in new orders has also led to a noticeable surge in output, marking the fastest growth in the last four months. Employment levels continued to rise for the ninth consecutive month, with the pace of hiring reaching its peak since October of the prior year, although the growing backlogs of work suggest ongoing demand challenges that may need to be addressed.

This positive trend in the private sector comes amid a backdrop of easing inflationary pressures, which could further encourage consumer spending and business investment in the upcoming months. Sustaining this growth will be crucial for the Nigerian economy as it navigates through challenges related to inflation, which can impact consumer confidence and overall economic stability. The PMI report paints a hopeful picture of recovery that could bolster economic optimism moving forward.