Nigeria’s Economy Expands for 8th Straight Month as CBN Reports Growth Across Key Sectors

Nigeria’s economy continued its upward trajectory in July 2025, recording its eighth consecutive month of growth, according to the Central Bank of Nigeria (CBN). The bank’s Purchasing Managers’ Index (PMI) stood at 52.7 index points, signaling an expansion in business activities across industry, services, and agriculture.

The CBN report revealed that out of the 36 subsectors surveyed, 26 posted growth, with transportation equipment leading the pack as the fastest-growing segment. However, not all areas performed positively—10 subsectors, including paper products, saw a slowdown, reflecting mixed but generally encouraging economic momentum.

Sector-by-sector performance showed steady resilience. The industrial sector grew at 51.1 index points for the eighth month in a row, while services maintained expansion at 52.8 index points for the sixth consecutive month. Agriculture remained the strongest performer, stretching its growth streak to 12 months with 53.9 index points, reinforcing its role as a backbone of the Nigerian economy.

Beyond output and production, consumer confidence showed signs of improvement. The CBN’s Inflation Survey indicated that fewer Nigerians felt inflation was uncomfortably high. In July, 66.2 percent of respondents expressed concerns about inflation, down from 71 percent in June, suggesting cautious optimism about price stability in the coming months.

Analysts say the sustained expansion points to a recovering economy, even as inflation pressures and sectoral disparities remain challenges. For many Nigerians, stable growth across industries and expectations of easing inflation offer a glimmer of hope for improved livelihoods and stronger business confidence heading into the rest of 2025.

Source: Vanguard