Nigeria’s economy maintained a strong growth trajectory in January 2026, with the Central Bank of Nigeria’s (CBN) composite Purchasing Managers’ Index (PMI) rising to 55.7 points. This marks the fourteenth consecutive month of expansion, signaling sustained improvement in business activity and confidence across key sectors. The latest PMI report reflects optimism among Nigerian businesses at the start of the year, showing resilience despite ongoing structural challenges.
The January PMI reading comfortably exceeded the 50-point benchmark that separates economic expansion from contraction, indicating rising output, demand, and overall business confidence. Across the three major pillars of the economy—agriculture, industry, and services—most subsectors recorded growth. Of the 36 subsectors surveyed, 31 showed positive performance, highlighting the broad-based nature of the recovery.
Breaking down the data, the industry sector posted a PMI of 56.0 points, with 14 out of 17 industrial subsectors reporting growth in production and related activities. The services sector followed closely with a PMI of 54.5 points, marking twelve straight months of expansion, while agriculture recorded a PMI of 54.2 points, continuing its eighteen-month growth streak. These figures point to improved operating conditions and strong demand across the private sector.
The sustained expansion is underpinned by steady performance in manufacturing, trade, transportation, professional services, and agro-processing. The CBN noted that consistent growth across sectors reflects improving business confidence, stable demand conditions, and a gradual recovery in supply-side dynamics. While challenges such as inflation, power supply issues, and high taxes persist, the broad-based gains indicate that Nigeria’s economic recovery is becoming more entrenched.
Looking back, the January 2026 PMI builds on a strong finish to 2025, when the private sector achieved its fastest expansion in December with a composite PMI of 57.6 points. While the January reading is slightly lower, it demonstrates sustained momentum rather than a slowdown. For policymakers, the PMI signals that supportive macroeconomic conditions are critical to converting short-term business optimism into long-term, inclusive economic growth.
source: nairametrics