Higher raw materials costs responsible for increased prices of goods — Report

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May 8, 2020
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Manufacturing and production firms have witnessed a sharp rise in purchasing costs due to difficulties in securing materials, leading to higher output prices and rise in inflation.

This is contained in the Stanbic IBTC Bank’s Nigeria PMI Rrort for April, 2020.

According to the report, new orders, output and employment witnessed sharp falls as prices rise amid supply chain disruption, especially in the private sector.


The Nigeria PMI report, published by Stanbic IBTC Bank Plc, reflects economic indicators gotten from regular surveys of private sector companies and it is targeted at providing information about current business conditions to various stakeholders. Readings above 50.0 indicate an improvement in business conditions while readings below 50.0 show a deterioration.

It noted that the introduction of the lockdown prevented many firms from completing outstanding orders, thereby making backlogs of work to increase for the first time in three months. Specifically, this report is a weighted average of the following five indices: new orders (30%), output (25%), employment (20%), suppliers’ delivery times (15%) and stocks of purchases (10%), the report stated.