By Amaka Ifeakandu
Lagos
The National Bureau of Statistics (NBS) has officially adopted the Stanbic IBTC Nigeria Purchasing Manager’s Index (PMI) as the Nigerian government’s private sector-based index for the country. The Statistician General of the Federation and Director-General, NBS, Dr. Yemi Kale disclosed this at the official launch of the Stanbic IBTC PMI in Lagos.
Stanbic IBTC Bank, a member of Stanbic IBTC Holdings Plc, said that the index compiled by Markit, launched as part of the bank’s effort to ensure a vibrant business environment, adding that the monthly index will help gauge the health of private sector businesses in the country.
The NBS SG commended Stanbic IBTC for taking the lead in the financial services industry with the PMI launch. He said his agency is pleased to partner with the bank on the index and assured that it will continue to extend the necessary assistance and support to ensure the PMI is robust. “We looked at the methodology, asked questions and we are extremely happy with the PMI. And to show the extent to which we are happy with it, we have officially adopted the Stanbic IBTC Nigeria PMI as government’s PMI,” he said.
The index, according to Stanbic IBTC, will reflect figures derived from the survey of the business landscape. The index, among other things, will measure private sector operating status and thereby provide an early indication of business conditions in the country. It is a composite index, calculated as a weighted average of five individual sub-components: New Orders (30%), Output (25%), Employment (20 per cent), Suppliers’ Delivery Times (15 per cent) and Stocks of Purchases (10 per cent).
In his address, Chief Executive Officer, Stanbic IBTC Bank, Mr Yinka Sanni, said the availability of data has been an invaluable input for individuals and businesses to weigh in environmental, political, economic, financial and capital market opportunities and issues in taking strategic positions for the future.
“Giving the importance of data and acknowledging the good works the National Bureau of Statistics has done over the years to improve collection and dissemination of statistics, Stanbic IBTC looked to identify a need in the space,” Mr Sanni said, adding, “We recognised that Nigeria needs accurate, timely and reliable data by which individuals and corporates can quickly gauge the temperature and momentum of economic activity.”
The bank chief said Stanbic IBTC then engaged Markit, the global diversified provider of financial information services, to help compile the business surveys and economic indices for the PMI. Head, Corporate and Transactional Banking,
Stanbic IBTC, Yewande Sadiku, said the PMI is premised on providing the earliest, most accurate and most comprehensive suite of economic indicators in the country that will help policy makers and businesses in making well informed decisions. Equally, the key indicators will provide a solid basis for investment strategies and asset allocation.
