Improving demand conditions helped to support further increases in output and new orders in Nigeria’s private sector at the midway point of the year.

Rising workloads and the prospect of further growth in the months ahead meant that firms took on additional staff and raised both purchasing activity and inventory holdings. Input costs and output prices increased sharply again, albeit to lesser extents than immediately following the outbreak of war in the Middle East.

The headline figure derived from the survey is the Stanbic IBTC Purchasing Managers’ Index (PMI). Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.

Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank commented: “Although the rate of growth slowed in June compared to May, Nigeria’s private sector witnessed an increase in output at the end of Q2:26 as higher demand and new product development supported an increase in sales volume for companies. This rising demand led to higher workload, thereby ensuring the private sector hired new staff across three of the four sectors monitored by the survey besides agriculture. Business confidence also rose to a 12-month high with firms citing the ability to secure new stocks; business expansion plans; and advertising efforts as key factors making them expect an expansion in output over the next one year. Input prices still increased but not up to what was witnessed during the onset of the United States/Israel – Iran war.

The effect of this was a passthrough impact on output prices amid rising cost of raw materials and transportation.

“The PMI print during the quarter is consistent with a likely 3.94% y/y GDP growth rate in Q2:26, higher than the 3.89% y/y growth seen in Q1:26. We retain our 2026 growth forecasts at 4.1% as we see the oil sector growing by 3.45% y/y in 2026, from 8.50% y/y in 2025, while the non-oil sector is likely to grow by 4.11% y/y, from 3.71% y/y in 2025. The risks to our outlook include country-wide insecurity which may constrain food production, exchange rate pressures resurfacing, extreme-weather related conditions and higher fertilizer prices impacting crop yield, and a volatile global environment which may affect sentiment and constrain capital flows.”

The headline PMI posted 53.4 in June, down slightly from May’s reading of 54.1, but still above the 50.0 no-change mark and signalling a solid monthly improvement in business conditions at the end of the second quarter.

The health of the private sector has now strengthened in five successive months. Panellists often reported improving customer demand in June. This, alongside the introduction of new products, helped lead to a further marked rise in sales volumes.

With new orders up and companies expanding their operations, output also increased. In both cases, however, rates of growth were softer than seen in May. Business activity expanded across three of the four broad sectors covered by the survey, the exception being manufacturing.

Companies were also optimistic that output will rise over the coming year, and sentiment improved markedly to the strongest since June 2025. Advertising efforts, business expansion plans and stockpiling were among the factors supporting confidence, according to respondents.

Improving customer demand and confidence in the year ahead outlook encouraged companies to expand their staffing levels, purchasing activity and inventories in June. Employment increased for the thirteenth consecutive month. The rate of job creation was modest, but the most marked since February.

The latest expansion in purchasing was marked and the same as that seen in May, while stocks of inputs were up solidly.

Despite increased operating capacity, backlogs of work continued to rise amid customer payment delays and power supply issues. Supply-chain delays were also evident as vendor lead times lengthened for the first time in a year.

Longer delivery times were often attributed to poor road conditions. Higher costs for fuel, raw materials and transportation resulted in a further sharp rise in purchase prices during June, albeit the rate of inflation eased to a four-month low.

Staff costs, meanwhile, increased at a sharper pace as companies helped their workers deal with rising living costs. The pass-through of higher input costs to customers resulted in a further marked rise in selling prices, and the pace of inflation ticked up from May.

The Central Bank of Nigeria (CBN) has revoked the operating licenses of forty-six (46) Microfinance Banks with effect from July 1, 2026, in accordance with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

The revocation was approved by the Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, following the banks’ failure to meet the regulatory requirements for continued operation as licensed financial institutions.

According to the revocation order, the action became necessary because of one or more of the circumstances listed below:

• Insufficient assets to meet liabilities
• Closure of operations without CBN approval
• Inactivity and cessation of financial intermediation
• Failure to commence operations within 12 months of licence approval
• Failure to maintain minimum capital funds unimpaired by losses.

The revocation of the licenses is part of the Bank’s ongoing efforts to safeguard the stability of the financial sector, protect depositors, and ensure that licensed institutions comply with current laws and regulatory requirements. The Central Bank of Nigeria remains committed to promoting a safe, sound and resilient financial system and will continue to take appropriate supervisory and regulatory actions, where necessary, to maintain public confidence in the Nigerian financial system.

The list of the affected MFBs is as follows:

Following the revocation of the operating licenses of 46 Microfinance Banks (MFBs) by the Central Bank of Nigeria (CBN), on July 1, 2026, the Nigeria Deposit Insurance Corporation (NDIC), has been appointed as the official Liquidator, pursuant to Section 12 (2) of BOFIA 2020, and Section 55 (1 & 2) of the NDIC Act 2023.

It is in this capacity that the Corporation wishes to inform the depositors of the banks in particular and the general public in general that the affected institutions are no longer authorised to conduct banking business in Nigeria.

Consequently, members of the public are strongly advised against any unauthorised transaction with the closed banks, or any attempt by individuals to remove, conceal, retain, or interfere with the assets, records, or properties of the banks, as this may constitute a violation of the law that could attract appropriate legal consequences.

The NDIC has commenced the process of the orderly closure of the failed banks with their immediate takeover, verification and payment of insured sums to eligible depositors.

Depositors and the general public would be duly informed on an ongoing basis on further steps to be taken regarding the liquidation exercise.

The list of the affected MFBs is as follows:

Rand Merchant Bank (RMB) a division of the First Rand Group recently played a central role in providing a new medium-term debt financing in support of Indorama Fertilizer and Chemicals FZE Limited, a key client in Nigeria across the Infrastructure Sector in Nigeria.

RMB acted as Co-ordinator and Lead Arranger on the USD340m refinancing which was recently signed and fully underwritten by Development Financial Institutions and international commercial banks.

This transaction is reflective of RMB’s deep strategic relationship with Indorama Group entities in Nigeria with the new facility providing a more competitive funding solution in line with the brownfield development of Indorama’s fertilizer operations in Nigeria.

In 2025, Indorama FZE achieved its highest ever urea production at 2.7 million Metric Tonnes with capacity utilisation of 103%.

Speaking on the transaction, Chidi Iwuchukwu, Executive Director and Head Investment Banking RMB Nigeria says ‘’this financing is a show of RMB’s commitment towards providing strategic advisory while also deploying its cross-border balance sheet towards supporting private sector investment across the heavy industry manufacturing segment of the domestic economy.  This financing is in support of the strong non-oil export growth in Nigeria where Indorama FZE continues to play as a market leading player.’’ Indorama FZE, according to statistics from the Central Bank of Nigeria, is the largest non-oil exporter in Nigeria with over 18% market of non-oil exports in 2024. The firm continues to support domestic food production and security by providing up to 75% market share in the Nigerian market.

The subject financing involved multiple institutions and processes towards putting in place a more cost competitive funding solution which aligns with the clients’ long term funding objectives. RMB had to deploy extraordinary resources to implement the transaction in timely fashion alongside other lenders.

Following its Line 3 commissioning in June 2026, Indorama becomes the world’s single largest single site urea producer. The firm currently possesses fully integrated operations for urea production encompassing its own gas pipelines, Feed Conditioning Units (FCU), Utilities and dedicated warehousing and jetty infrastructure enabling seamless and continuous operations.

Enyinna Anumudu, Senior Dealmaker and Head Infrastructure Finance Nigeria concludes: “RMB is proud to have acted as Lead Arranger and Coordinator for the refinancing at Indorama FZE. By making this financing available for domestic manufacturing and heavy industry investments in Nigeria, we have entrenched the long-term competitiveness of Nigerian private sector in meeting the domestic and export demand for fertilizer while supporting food sufficiency in the country.”

About RMB Nigeria Limited

RMB Nigeria Limited, a member of the FirstRand Group, is a leading African Corporate and Investment Bank. RMB Nigeria provides clients with innovative, value-added solutions across advisory, funding, trading, corporate banking, and principal investing.

Stanbic IBTC, a member of Standard Bank Group, has officially launched its new thematic brand campaign, ’You’re Built for Growth’, a bold expression of the Group’s commitment to supporting individuals, businesses and communities as they pursue their ambitions and unlock new opportunities.

The integrated campaign, which spans television, radio, print, social media, Out-Of-Home (OOH) and Digital Out-Of-Home (DOOH) platforms, celebrates the resilience, determination and potential as key drivers of progress across Nigeria.

Through relatable stories and inspiring narratives, the campaign reinforces Stanbic IBTC’s role as a trusted financial partner that helps clients and stakeholders achieve growth in all its forms.

At the heart of the campaign is a simple but powerful belief: growth is not reserved for a select few. Whether it is starting a business, expanding an enterprise, building wealth, securing a family’s future or pursuing personal aspirations, every individual and organisation has the potential to achieve more with the right support.

Speaking on the campaign, Chuma Nwokocha, Chief Executive, Stanbic IBTC Holdings, said:

“At Stanbic IBTC, we are clear on our purpose: to support growth, open up opportunities, and stand by our clients at every stage of their journey. ‘You’re Built for Growth’ reflects who we are as a Group – a trusted partner you can rely on; a forward-looking institution creating new possibilities; and a committed partner helping individuals and businesses achieve lasting success.”

More than a marketing campaign, ‘You’re Built for Growth’ is a reaffirmation of Stanbic IBTC’s enduring commitment to creating value, building trust and enabling sustainable growth for its clients, communities and the economy.

The campaign’s flagship television commercial brings this message to life through compelling representations of ambition, perseverance and achievement, while complementary radio, print, digital and outdoor executions extend the message to audiences across the country.

Stanbic IBTC intends to continue demonstrating the importance of support for achieving real growth as the Group continues to empower Nigerians to pursue their goals with confidence.

Bridget Oyefeso-Odusami, Head, Brand and Marketing, Stanbic IBTC Holdings, also expressed the meaning of growth as embodied in the company’s new campaign.

She said: “Growth means different things to different people. For some, it is building a business. For others, it is growing their savings; protecting what matters most; investing for the future or creating opportunities for future generations. Whatever that journey looks like, Stanbic IBTC remains committed to helping our clients achieve growth.”

With a heritage of supporting progress and enabling opportunity, Stanbic IBTC continues to provide comprehensive financial solutions that help individuals, businesses and institutions navigate an evolving world and build sustainable futures.

About Stanbic IBTC Holdings

Stanbic IBTC Holdings is a leading end-to-end financial services group in Nigeria, providing banking, pensions, asset management, stockbroking, trusteeship, insurance and investment banking solutions to individuals, businesses and institutions. The Group remains committed to driving inclusive growth, creating opportunities and helping clients achieve their long-term aspirations through innovative financial solutions and market-leading expertise.