The latest Purchasing Managers’ Index (PMI) report from the Central Bank of Nigeria (CBN) reveals a broad and sustained expansion in Nigeria’s business activities, highlighting increasing economic resilience in the third quarter of 2025.
With a composite PMI reading of 54.0 in September, the report indicates continued improvement across critical indicators such as production output, new orders, and employment levels. A PMI above 50 signifies growth, and Nigeria’s performance reflects positive momentum in key sectors—Industry, Services, and Agriculture.
Broad-Based Economic Growth Across Sectors
The CBN’s report shows strong performances in several PMI sub-indices:
- Output Index: 54.8 points
- New Orders Index: 53.7 points
- Employment Index: 53.4 points
- Raw Materials Inventory: 52.9 points
- Suppliers’ Delivery Time: 54.6 points
These figures suggest that businesses are experiencing higher demand and operating more efficiently, with improved supply chain speeds supporting increased production.
Among the 36 subsectors surveyed, 28 recorded expansion, while only 8 saw mild contractions. The Forestry subsector led the growth chart with an impressive 73.6 index points, signaling a standout performance, whereas Nonmetallic Mineral Products registered the sharpest decline at 40.7 points.
Industry Sector Returns to Growth
After a brief contraction in August, the Industry Sector PMI rose to 51.4 points in September, signaling a renewed expansion phase. Out of 17 industrial subsectors, 11 experienced growth, led by the Printing & Related Support Activities subsector at 59.4 points. Meanwhile, six subsectors contracted slightly, with Nonmetallic Mineral Products remaining the weakest.
Key sectoral indicators included:
- Output: 51.6 points
- Employment: 51.9 points
- Raw Materials Inventory: 51.1 points
- Suppliers’ Delivery Time: 54.6 points
Although the New Orders Index slipped slightly to 49.4 points, the overall industrial activity remained positive due to stronger production and labour engagement.
Services Sector Maintains Solid Growth Streak
The Services Sector continued its impressive run with a PMI of 54.7 points in September, marking its eighth consecutive month of expansion. All major indicators within the sector registered growth:
- Business Activities: 56.3 points
- New Orders: 55.1 points
- Employment: 54.1 points
- Inventories: 53.2 points
Among 14 subsectors surveyed, 12 expanded, led by Educational Services with a remarkable 65.8 points. The only subsector to record contraction was Professional, Scientific & Technical Services, which saw a mild dip to 45.6 points.
Agriculture Sector Remains the Strongest Performer
Agriculture continued to lead with a PMI of 54.8 points, marking its fourteenth consecutive month of growth. All five agricultural subsectors expanded, supported by key indicators such as:
- General Farming Activities: 55.4 points
- New Orders: 55.9 points
- Employment: 53.4 points
- Raw Materials Inventory: 54.5 points
The Forestry subsector again stood out, posting a remarkable 73.6 points, underlining the sector’s vital role in national economic output.
The report highlights Nigeria’s ongoing economic recovery, with 28 out of 36 subsectors reporting growth and increased efficiency across supply chains. Despite challenges in a few areas, the positive trends in production, new orders, and employment demonstrate that businesses are adapting well to changing market dynamics.
As Nigeria’s economy strengthens, the latest PMI data offers optimism for sustained growth in the months ahead.
About the Author
