Private sector sustains 11-month growth as PMI hits 55.4 points

By Chinwendu Obienyi

Nigeria’s private-sector activity expanded for the 11th consecutive month in October, supported by broad-based growth across industry, services, and agriculture, data from the Central Bank of Nigeria (CBN) revealed on Wednesday.

The country’s composite Purchasing Managers’ Index (PMI) rose to 55.4 points in October 2025 from 54.0 in September, marking the highest reading this year and signaling stronger business conditions across the economy. A PMI reading above 50 indicates expansion, while a reading below that threshold signals contraction.

The apex bank’s latest PMI report showed that 25 of the 36 subsectors surveyed recorded growth during the month, extending the country’s run of steady expansion to eleven months. The performance underscores sustained improvements in business confidence, output, and employment across key segments of the economy.

According to the report, the industrial sector recorded a notable rebound, with its PMI climbing to 54.2 points in October from 51.4 in the previous month. Nine of the 17 subsectors within the group expanded during the review period, reflecting stronger manufacturing activity and improving supply-chain dynamics. Analysts said the pickup suggests that the sector’s gradual recovery is gaining traction after earlier disruptions tied to energy and input costs.

The services sector, Nigeria’s largest contributor to GDP, also maintained its growth momentum, posting a PMI of 55.6 in October, up from 54.8 in September. Eleven of the fourteen subsectors surveyed reported higher business activity, marking the ninth straight month of expansion and highlighting the sector’s resilience amid ongoing macroeconomic adjustments.

Agriculture, a key pillar of Nigeria’s non-oil economy, continued to outperform, with its PMI at 55.7 in October, the fifteenth consecutive month of growth and the longest expansion streak among the three major sectors. All five agricultural subsectors recorded gains, underscoring the sector’s vital role in supporting food supply and rural employment. However, the sector also posted the widest gap between input and output prices at 8.4 index points, indicating rising production costs.

In contrast, the services sector recorded the narrowest input-output price gap of 0.6 index points, suggesting relative price stability.

Across the composite indices, the Output Index rose to 57.2 points, New Orders climbed to 56.0, and the Employment Index increased to 53.8, signaling continued expansion in demand and hiring. The Stock of Raw Materials Index also improved to 53.6 points, while the Suppliers’ Delivery Time Index strengthened to 54.8, indicating more efficient supply responses.

Furthermore, educational services recorded the strongest growth among all subsectors, while Petroleum and Coal Products showed mild contraction, the report said.

Overall, the sustained expansions across industry, services, and agriculture reflect continued strengthening of Nigeria’s growth fundamentals. The consistent improvement in PMI provides firm evidence of broad-based economic momentum and supports a positive outlook for the fourth quarter of 2025, as output and business confidence continue to build.