Agriculture Sector Drives Economic Growth in April 2025, Marks 9th Consecutive Expansion

Economic activities in Nigeria experienced consistent growth for the fifth consecutive month in April 2025, with a 52.2 index point increase, according to the Central Bank of Nigeria (CBN). The agricultural sector led this expansion, marking its ninth straight month of growth. The increase in new orders was a key factor in this continued growth, signaling a positive trajectory for the Nigerian economy in the second quarter of 2025.

The CBN’s Purchasing Managers Index (PMI) for April revealed that the agricultural sector recorded the highest expansion, with 53.8 index points. This was driven primarily by an uptick in new orders within the sector. The index for overall economic activities also pointed to sustained positive momentum, showing the resilience of major sectors including industry and services.

The industry sector also demonstrated growth in April 2025, marking its fourth consecutive month of expansion. This was largely attributed to an increase in production outputs. The services sector similarly experienced growth due to a rise in incoming business, reflecting a healthy economic environment across multiple industries.

Additionally, the report noted that 22 of the 36 subsectors across industry, services, and agriculture reported growth in April. The transportation equipment subsector led the pack with the highest growth during the month, while the paper product subsector saw the largest decline. This indicates a mixed yet generally favorable trend across various industries.

Despite these positive trends, businesses in Nigeria are facing challenges related to margin pressure, as input costs continue to rise faster than output prices. This could put strain on long-term profitability, even as the broader economy shows signs of growth across key sectors.

Source: Vanguard