CBN: Nigeria’s Economy Expands for Second Month, Led by Industry and Agriculture
Nigeria’s economic expansion continued in January 2025, marking the second consecutive month of positive growth, according to 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 despite challenges in the services sector. The expansion was largely driven by the industry and agriculture sectors, with some concerns about supply chain disruptions that affected material stock and delivery times.
A detailed analysis of the PMI data revealed growth in several key indicators. Composite output, new orders, and employment levels all showed positive trends, with respective indices of 50.9, 50.2, and 50.2 points. However, there were challenges in supply chains, with raw material stock declining to 49.8 points and supplier delivery times slowing further, down to 49.6 points. These disruptions posed challenges to maintaining growth momentum.
The industrial sector displayed strong resilience, with a PMI of 51.3 points, signaling continued expansion. Of the 17 sub-sectors surveyed within the industry, 10 recorded growth, while six contracted. The transportation equipment sub-sector saw the highest growth, while the non-metallic mineral products sub-sector experienced the most significant contraction. Despite growth in output and employment within the sector, declines in new orders and raw material stock indicated areas of weakness.
In contrast, Nigeria’s services sector struggled, with a PMI of 48.6 points, indicating contraction. Only three of the 14 sub-sectors showed growth, while 10 faced downturns. The motion pictures and music production sub-sector experienced the most significant expansion, while transportation and warehousing saw the steepest declines. Key indicators in the services sector, including business activity, new orders, and employment, all reflected negative growth, underscoring the sector’s ongoing challenges.
Agriculture continued to contribute significantly to the country’s economic expansion, registering a PMI of 52.5 points. Most sub-sectors within agriculture, including crop production, showed growth, while forestry experienced a contraction. Key agricultural indicators such as output, new orders, employment, and stock of raw materials continued to point to a sustained positive trajectory, offering a solid foundation for continued economic growth in the coming months.
SOURCE: THE SUN