Nigeria’s private sector demonstrated a robust recovery in February 2026, rebounding from the previous month’s contraction, according to the latest Purchasing Managers’ Index (PMI) from Stanbic IBTC Bank Nigeria. The seasonally adjusted headline PMI registered 53.2, a significant increase from 49.7 in January, moving decisively above the 50.0 threshold that distinguishes economic expansion from contraction.
This reading indicates a broad-based resurgence in business activity across the economy. A PMI figure above 50 signals growth, and February’s result marks a clear reversal of the sluggish conditions observed at the start of the year. The rebound was universal across the four sectors monitored: wholesale and retail, manufacturing, services, and agriculture all returned to expansionary territory following the January slowdown.
Central to the recovery was a sharp rise in new orders, driven by improved product affordability and increased customer traffic. This inflow of new business encouraged companies to ramp up output, which regained momentum after its dip in the prior month. In response to stronger demand, firms also increased their purchasing activity and built up inventories to secure supply chains.
The labour market reflected this renewed vigour. Employment expanded for the ninth consecutive month in February, with the rate of job creation reaching its highest level since October 2025. Businesses cited the need to support higher production volumes and meet growing demand as key reasons for accelerated hiring.
Market analysts interpret the stronger PMI as evidence that demand conditions and corporate activity are stabilising after a temporary lull. The revival was attributed primarily to the return of new orders, which in turn drove output growth at its fastest pace in four months. The PMI, a composite indicator of new orders, output, employment, suppliers’ delivery times, and inventories, remains a key forward-looking gauge of Nigeria’s non-oil private sector health.
The February data suggests a timely resurgence in economic momentum, offering a positive signal for overall growth trajectories in the near term. Sustained expansion will depend on the persistence of customer demand and firms’ ability to manage input costs and supply chains effectively.
