RFA Breakfast Paper - September 1, 2026
Nigeria’s PMI Strengthens to 17-Month High on Stronger Demand
The Stanbic IBTC Bank Nigeria PMI rose sharply to 54.3 in August 2026 from 52.5 in July, signaling a solid improvement in private-sector business conditions and marking the seventh consecutive month of expansion. The latest reading represented the strongest improvement since March 2025, driven by a sharp increase in new orders, which expanded at their fastest pace since early 2024 amid stronger customer demand and new product launches. Firms responded by accelerating output and purchasing activity, while improved material availability also supported production. Employment increased for a 15th consecutive month, although job creation remained modest, while backlogs declined for the first time in seven months, suggesting that firms were better able to meet rising workloads. However, inflationary pressures strengthened, with purchase cost inflation edging higher on increased fuel and transportation costs, while output price inflation also accelerated. Despite these cost pressures, firms remained confident about future growth, although sentiment softened slightly, indicating continued optimism about the private-sector outlook.
U.S. Stocks Fall as Yields Near 4.8%
U.S. equities fell on Tuesday, with the S&P 500 down 0.71% to 7,631.47 and the Nasdaq Composite off 1.03% to 26,099.77, as a renewed climb in Treasury yields pressured rate-sensitive and megacap technology shares. The 10-year yield pushed toward 4.8%, near a three-year high, after a jump in oil prices revived inflation concerns and markets moved to price a possible Federal Reserve rate increase this month. Nvidia and Tesla led the declines, while investors awaited Wednesday's ADP report and Friday's payrolls for direction.
NGX Extends Rally on Oil, Financials
The Nigerian equity market opened September in the green, with the NGX All-Share Index rising 0.77% to 246,082.63 and market capitalisation gaining ₦1.22 trillion to ₦158.96 trillion in a fourth consecutive advancing session. Breadth was firmly positive, with 40 gainers to 18 losers, as bargain hunting in mid- and large-cap names drove the tape. All five major sector indices advanced, led by Oil & Gas (+3.87%) and Insurance (+3.34%), with Banking up 0.87%. Aradel Holdings (+8.83%), AccessCorp, Zenith Bank and Nestlé Nigeria (+5.83%) paced the blue-chip gains, while FTN Cocoa and McNichols hit the 10% ceiling; Tripple Gee and NAHCO led the few decliners.
