Nigeria’s economic momentum continued its upward trajectory in January 2025, marking the second consecutive month of expansion, as indicated by the latest Purchasing Managers’ Index (PMI) report from the Central Bank of Nigeria (CBN). The PMI stood at 50.2 points, signaling sustained business activity, bolstered by growth in key sectors such as industry and agriculture, even as the services sector lagged behind.
A deeper analysis of the PMI data revealed that composite output, new orders, and employment levels all reflected positive trends, standing at 50.9, 50.2, and 50.2 index points, respectively. However, challenges persisted in supply chain dynamics, with the composite stock of raw materials declining to 49.8 points and suppliers’ delivery time further slowing to 49.6 points.
Of the 36 sub-sectors surveyed across industry, services and agriculture, 17 recorded expansion, with transportation equipment leading the pack in growth. Conversely, another 17 sub-sectors experienced contraction, with forestry posting the most significant decline, while two sub-sectors remained unchanged.
Industry Sector Sees Continued Expansion
The industry sector remained resilient, with a PMI of 51.3 points, reflecting sustained expansion. Of the 17 sub-sectors surveyed, 10 recorded growth, six contracted, while the plastic and rubber products sub-sector remained stable. Transportation equipment emerged as the fastest-growing sub-sector, whereas the non-metallic mineral products sub-sector recorded the highest contraction.
Within the industry sector, output and employment levels showed impressive gains, rising to 54.0 and 52.4 points, respectively. However, new orders and stock of raw materials recorded slight declines, settling at 49.6 points each. Suppliers’ delivery time also reflected continued delays, standing at 49.6 points.
Unlike the industrial sector, Nigeria’s services sector struggled, registering a PMI of 48.6 points—indicating contraction. Among the 14 sub-sectors assessed, only three showed expansion, while 10 faced a downturn, and one remained unchanged. Notably, the motion pictures, cinema, sound recording, and music production sub-sector recorded the highest expansion, whereas transportation and warehousing suffered the most significant contraction. Key indicators such as business activity, new orders, stock of raw materials, and employment levels all declined, standing at 48.8, 48.6, 48.6, and 48.4 points, respectively.
Agriculture continued to serve as a bedrock for economic expansion, posting an overall PMI of 52.5 points. Of the five sub-sectors reviewed, four experienced growth, with crop production leading the expansion, while forestry posted a contraction. Indicators within the sector—output (51.8), new orders (54.3), employment (51.3), and stock of raw materials (52.4)—all pointed to sustained growth.
The PMI remains a crucial gauge of economic performance, derived from business responses on changes in production, orders, inventory levels, and employment. A reading above 50.0 points indicates expansion, while a score below 50.0 points signals contraction. With Nigeria’s economy maintaining a positive trajectory for the second consecutive month, the outlook for sustained growth remains promising, despite sectoral disparities.