Nigeria’s economy continued on a growth trajectory in August 2025, with the composite Purchasing Managers’ Index (PMI) rising to 51.7 index points, signaling expansion in overall economic activity for the ninth consecutive month, according to a new report by the Central Bank of Nigeria (CBN).
The report shows robust performance in the services and agriculture sectors, which recorded PMI scores of 51.9 and 53.9 index points, respectively. However, the industrial sector lagged behind, slipping into contraction at 49.1 index points, a decline driven by falling output, employment, and new orders.
“The Industry Sector index, at 49.1 points, indicated contraction in industrial activities in August 2025,” the report noted.
Key indicators for the industrial sector showed weakness:
- Output: 49.6
- New Orders: 47.2
- Employment: 48.9
- Stock of Raw Materials: 48.9
On the positive side, Suppliers’ Delivery Time in the industrial sector improved to 52.4 index points, reflecting faster delivery speeds.
Among the 17 industrial subsectors surveyed, only 7 recorded growth. The Transportation Equipment subsector led the gains, while Paper Products suffered the sharpest decline.
Despite the industrial slump, the expansion in services and agriculture helped maintain overall positive momentum in the economy:
- The service sector has now recorded growth for seven straight months, with 10 out of 14 subsectors expanding.
- The agriculture sector posted its thirteenth consecutive month of growth, with all five subsectors reporting gains.
The report also highlighted a significant pricing disparity:
- The Industry Sector recorded the highest gap between input and output prices at 7.4 points, suggesting growing cost pressures.
- In contrast, the Services Sector had the smallest gap at 3.7 points, indicating more stable pricing dynamics.
“Overall, the August 2025 PMI data indicated a continued expansion in economic activities across Nigeria,” the CBN stated. “The expansion for services and agriculture sectors underpins a favourable outlook in the third quarter of the year.”
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