Nigerian Private Sector Activity Rises in September, Boosting Investment Opportunities
ABUJA - In a positive sign for investors, Nigerian private sector activity expanded for the second consecutive month in September, driven by a surge in new orders for chemical and pharmaceutical products. According to a central bank business survey released on Friday, the purchasing managers index (PMI) of private-sector activity increased to 50.5 points from 50.2 points in August, surpassing the crucial 50 point threshold that indicates growth.
These results are especially significant as they come amidst President Bola Tinubu's reforms to the currency market and reductions in petrol and electricity subsidies, which have led to inflation and diminished purchasing power among Nigerians. The PMI report highlighted growth in 23 out of 36 sub-sectors in September, with cement recording the highest increase while transportation and warehousing saw a decline.
Notably, sectors such as non-metallic mineral products, petroleum, and coal products remained unchanged. The central bank's decision to raise interest rates five times this year in a bid to combat inflation has had mixed results, with analysts warning of the negative impact on borrowing costs for businesses and overall economic activity.
In conclusion, these latest developments in the Nigerian private sector offer valuable insights for investors looking to capitalize on emerging trends in the market. By monitoring key indicators such as the PMI, investors can make informed decisions to optimize their investment portfolios and navigate potential risks in the current economic landscape.