Nigerian firms have increased prices to a 16-month high, even as overall business activity continued to expand in April, according to the latest Purchasing Managers’ Index (PMI) report by Stanbic IBTC Bank and S&P Global.
The price increase is triggered by higher fuel costs following global tensions.
“The pass-through of increased input costs to customers resulted in a further sharp rise in output prices, with the rate of inflation quickening to the fastest since December 2024,” the report said.
The PMI report, endorsed by the National Bureau of Statistics, showed that Nigeria’s private sector sustained growth momentum at the start of the second quarter, although inflationary pressures constrained the pace of expansion.
According to the report, the headline PMI rose to 52.4 in April from 51.9 in March, marking the third consecutive month above the 50.0 threshold that signals improvement in business conditions.
It noted that “the Nigerian private sector remained in growth territory… as customer numbers and market demand continued to strengthen,” but added that “the impacts of higher fuel costs as a result of the war in the Middle East were felt again, pushing up prices and reportedly limiting expansions in new orders and business activity.”
