Nigeria’s private sector has recorded its fastest employment growth since October 2023, as business activity strengthened for the eighth consecutive month, according to the latest Purchasing Managers’ Index (PMI) data.
The PMI, compiled by S&P Global and released by Stanbic IBTC Bank on Friday, rose to 54.0 in July 2025, its highest level in three months, up from 51.6 in June.
The index, which measures business conditions in the non-oil private sector, indicates expansion when above 50.
In its report, S&P Global said:
“The headline PMI rose to a three-month high of 54.0 in July, up from 51.6 in June. The reading signalled a solid monthly improvement in the health of the private sector, extending the current sequence of expansion to eight months.”
What’s Driving the Growth?
Analysts attribute the surge in hiring to rising new orders and output, which encouraged businesses to expand capacity. This improvement comes as inflationary pressures showed signs of easing, giving companies breathing space to invest in operations.
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The report highlighted that firms are ramping up production and staffing to meet growing demand, a sign that confidence in the economy is gradually improving despite macroeconomic challenges.
Key Takeaways:
PMI rose to 54.0 in July – highest in three months.
Strongest employment growth since October 2023.
Private sector expansion now in its 8th consecutive month.
Hiring driven by increased orders and easing inflation.
Economists say if this momentum is sustained, Nigeria could see significant recovery in job creation and private sector stability in the coming quarters, even as structural challenges like power shortages and FX constraints persist.