Nigeria’s private sector continued to expand in October, but the pace of growth slowed as rising fuel costs increased business expenses and pushed up selling prices.
The latest Purchasing Managers’ Index (PMI) report released by Stanbic IBTC Bank showed that the headline index declined to 55.7 points in October from 56.4 points recorded in September.
Although the index remained above the 50-point threshold that indicates expansion, the decline suggests that business activity grew at a slower rate during the month.
The report identified higher fuel costs as a major factor contributing to increased input prices and selling prices across businesses.
Companies are facing rising operational expenses as transportation, production and distribution costs increase, creating additional pressure on businesses and consumers.
The development comes amid continued efforts to stabilise Nigeria’s economy following major economic reforms.
Meanwhile, the incoming chairman of the Nigerian Economic Summit Group, Omoboyede Olusanya, has called for economic policies that deliver measurable improvements in Nigerians’ living standards.
He said economic growth should translate into better employment opportunities, higher incomes, improved productivity and stronger livelihoods.
The report highlights the challenges businesses continue to face despite sustained expansion in the private sector.
