Nigeria’s private sector continued its steady recovery in July 2026, with the Central Bank of Nigeria (CBN) reporting a Purchasing Managers’ Index (PMI) of 51.1 points, signaling sustained business expansion across the country. The latest figures were driven largely by impressive performances in the Agriculture and Services sectors, reinforcing confidence that the economy is gradually regaining momentum despite lingering challenges in manufacturing and industry.
Agriculture remained the backbone of the country’s economic growth, recording its 24th consecutive month of expansion with a PMI of 52.1 points. According to the CBN, stronger farming activities, increased employment, rising new orders, and healthy inventory levels all contributed to the sector’s resilience. Agricultural Support Services emerged as the strongest-performing subsector during the month, although Crop Production experienced a slight contraction, highlighting the mixed realities within the sector.
The Services sector also delivered encouraging results by returning to expansion after three months of contraction. Its PMI climbed to 51.1 points from 49.4 points in June, with eight out of eleven subsectors posting growth. Administrative and Support Services led the gains, while Transportation, Courier and Storage recorded the weakest performance. The CBN noted that improvements in business activity, easing inflationary pressures, stronger employment, and faster supplier delivery times all contributed to the sector’s renewed strength.
Despite the positive momentum, Nigeria’s industrial sector continued to struggle. Although the Industry PMI improved slightly from 49.5 to 49.6 points, it remained below the 50-point benchmark, indicating another month of contraction. Lower production output, declining new orders, and shrinking raw material inventories weighed heavily on manufacturers. However, stable employment levels and improved supplier response times suggest that businesses remain optimistic about future recovery. Among industrial subsectors, Electrical and Electronics posted the strongest growth, while Oil Refining experienced the sharpest decline.
The latest PMI data comes as Nigeria’s broader economic indicators continue to improve. Headline inflation eased to 15.91% in June 2026, significantly lower than the 25.29% recorded a year earlier. Meanwhile, agriculture has continued to show resilience after posting 3.15% real growth in the first quarter of 2026. However, concerns remain over rising monthly food inflation and warnings from the Food and Agriculture Organization (FAO) that millions of Nigerians could face severe food insecurity without urgent intervention. With continued government support, including the World Bank-backed $500 million AGROW Project, analysts believe agriculture will remain central to Nigeria’s economic recovery while policymakers work to revive the struggling industrial sector.
source: nairametrics
