Nigeria’s business activity hit a 19-month low in October, as revealed by Stanbic IBTC Bank’s latest PMI report.

Driven by soaring costs and a weak naira, the index fell to 46.9, signaling deteriorating conditions.

With rising expenses in fuel and transport, businesses are passing costs to consumers, intensifying inflation.

Nigeria’s business sector is facing serious challenges, with the latest Purchasing Managers Index (PMI) for October showing a significant drop in activity, largely due to rising costs and a weakening naira.

Released by Stanbic IBTC Bank, the PMI fell to 46.9 in October from 49.8 in September, thus reaching its lowest point since March 2023.

Any reading below 50.0 signals a decline in business conditions.

Moreover, the decline reflects a dramatic rise in input costs, marking the third-highest increase on record.

This surge, driven by a weak naira, higher transportation fees, and rising fuel prices, has squeezed businesses’ purchasing power, thereby forcing many to raise their selling prices.

As a result, inflationary pressures have intensified, with consumers bearing the brunt.

In addition, demand has also taken a hit, with new orders dropping at their fastest pace since early 2023.

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In response, businesses have cut back on purchases, which has led to a fall in input stocks for the third straight month, further adding stress to already strained supply chains.

However, there is a slight rise in employment levels, marking a sixth month of modest growth.

Some firms are hiring temporary staff to keep up with production schedules, while others are scaling back to control costs.

Ultimately, amid these economic pressures, Nigerian firms are struggling to balance rising expenses with shrinking demand, leaving the business outlook cautious as they navigate ongoing economic turbulence.