FBNQuest March PMI picks up strongly to 56.9

Nigeria's manufacturing Purchasing Managers’ Index (PMI) experienced a strong surge in March, jumping from 50.4 to 56.9. This uptick was reflective of increased economic activity following the presidential election. The rise in the headline reading was supported by improvements in four out of five sub-indices, with notable increases seen in production and stocks of purchases. However, the employment sub-index rose only marginally, primarily driven by recruitment of support staff in smaller companies. The availability of foreign exchange (FX) for manufacturers has also played a significant role in boosting the sector, with the INE window registering an inflow of over $5.4 billion post-election. Despite these positive trends, challenges such as subdued demand and limited access to affordable credit continue to pose obstacles to the sector's growth. The delay in the passage of the national budget and the implementation of the new minimum wage are additional factors that could influence the manufacturing landscape in the coming months. Looking ahead, a keen focus on policy direction will be crucial in shaping the outlook for Nigeria's manufacturing sector in the second quarter.