Nigeria’s economy appears to be on a path to gradual recovery, as the Central Bank of Nigeria (CBN) reported a rise in the country’s Purchasing Managers’ Index (PMI) to 52.3 in March 2025, up from 51.4 in February. This marks the third consecutive month of economic expansion, signaling growing business confidence and resilience across multiple sectors. The PMI figures, although slightly differing from those reported by Stanbic IBTC, both indicate continued positive momentum in the economy.
The expansion is seen across all major sectors: industry, services, and agriculture. The composite PMI of 52.3 points reflects a steady increase in economic activity, with agriculture leading the charge at 54.7 points. Both the industry and services sectors also saw positive growth, posting PMIs of 51.5 points each. These figures underscore the broad-based nature of the economic recovery in Nigeria.
In addition to the sector-wide growth, key sub-indices also show positive trends. The output index rose to 52.8 points, indicating increased production levels, while the new orders index stood at 52.2 points, reflecting growing demand. Notably, 24 out of the 36 sub-sectors monitored by the CBN reported growth, with forestry being the fastest-growing sub-sector. However, 12 sub-sectors saw a contraction, with non-metallic mineral products experiencing the most significant decline.
Analysts note that the positive PMI reading suggests continued momentum in business activity, with rising demand and investments contributing to increased hiring and stockpiling of inventories. While inflationary pressures, particularly in the industry and services sectors, remain a concern, the PMI’s upward trend highlights the resilience and optimism within Nigeria’s private sector, suggesting potential for long-term growth despite ongoing economic challenges.
Source: The sun