Lagos, Nigeria – February 19, 2025 – Business confidence in the Nigerian economy is showing positive signs, fueled by ongoing federal government reforms. A recent Stanbic IBTC Purchasing Manager’s Index (PMI) survey revealed a rise to 54.5 in January 2025, up from 52.7 in December 2024. A PMI reading above 50 indicates expansion in the private sector.

“Nigeria’s private sector activity sustained its improvement in January 2025,” noted Muyiwa Oni, head of Equity Research West Africa at Stanbic IBTC Bank. He cited increased output and new orders, driven by improved customer demand and a greater willingness to invest in new projects.

While acknowledging the improving business environment, Samuel Sule, CEO of Renaissance Capital Africa, emphasized the importance of policy stability for attracting further investment. He stressed that consistent policies and their effective implementation are crucial for investor confidence.

Samson Simon, CEO of ARKK Economics and Data Limited, highlighted the need for greater transparency and an improved ease of doing business index to curb capital flight. He argued that transparency reduces corruption, making Nigeria a more attractive destination for businesses. Simon advocated for well-sequenced and coordinated reforms to solidify Nigeria’s position as a preferred investment hub.

The manufacturing sector is also experiencing a boost in confidence. The Manufacturers CEOs Confidence Index (MCCI) rose marginally in Q4 2024, reaching 50.7 points, up from 50.2 points in the previous quarter. This increase reflects improved business conditions, employment, and production levels, largely attributed to increased consumer demand during the festive season, according to the Manufacturers Association of Nigeria (MAN) Q4 report.

These positive indicators, including the PMI, MCCI, and CBN Business Expectation Survey, suggest that the government’s reforms are beginning to yield positive results, bolstering business confidence and paving the way for potential economic growth. However, experts caution that continued focus on policy consistency, effective implementation, transparency, and ease of doing business is essential for sustaining this positive momentum and attracting significant foreign investment.