Nigeria has overtaken Kenya to become Africa’s leading market for private-sector growth, according to the latest Purchasing Managers’ Index (PMI) data, signaling a strong rebound in business activity despite ongoing economic challenges.
The report shows Nigeria’s PMI rising from 52.9 to 54.1, surpassing Kenya and placing Africa’s largest economy at the top of the continent’s private-sector growth rankings. A PMI reading above 50 indicates expansion in business activity, while figures below 50 suggest contraction.
The development comes as Kenya’s private sector continues to face mounting pressures from inflation, rising operating costs, and weaker consumer demand. Kenya’s PMI fell below the 50-point threshold in recent months, reflecting a slowdown in business activity across several sectors.
Analysts attribute Nigeria’s resurgence to stronger business confidence, improving non-oil sector performance, and economic reforms that have encouraged investment and expansion across key industries. The country’s services, manufacturing, and technology sectors have played a significant role in driving growth.
The latest rankings represent a notable shift from late 2025, when Kenya had briefly emerged as Africa’s fastest-growing private-sector economy. Nigeria’s return to the top highlights the intense competition among Africa’s leading economies as they seek to attract investment and strengthen private enterprise.
Economists say the strong performance could further boost investor confidence in Nigeria, particularly as the country continues efforts to diversify its economy beyond oil and expand opportunities in sectors such as fintech, manufacturing, logistics, and digital services.
Data from the latest S&P Global Purchasing Managers’ Index (PMI) confirms that Nigeria’s private sector recorded one of its strongest surges in business activity, with the national PMI jumping to 54.1. This rebound has allowed Nigeria to outpace Kenya and lead the continent in month-on-month private-sector
While challenges including inflation and currency pressures remain, the latest data suggests that Nigeria’s private sector is showing resilience and could play a key role in driving economic growth across the continent in the months ahead.
