Nigeria’s Economic Growth Slows in March 2026 Amid Rising Costs – CBN PMI Report

Nigeria’s economy maintained its growth streak in March 2026, with the Central Bank of Nigeria (CBN) reporting a composite Purchasing Managers’ Index (PMI) of 53.2 points. This marks 16 consecutive months of expansion across key sectors, though it reflects a slowdown from February’s 56.4 points, signaling a softer pace of growth despite continued expansion. A PMI reading above 50 points indicates growth, while a figure below 50 signals contraction.

The CBN survey, covering 36 subsectors, showed that 31 sectors expanded while five contracted. The industry sector recorded the strongest performance with a PMI of 54 points, driven by 14 of 17 subsectors. Production output, new orders, and employment registered 55.6, 53.1, and 52.1 points, respectively, reflecting steady activity. Primary metals lagged in performance, whereas the electrical equipment subsector led growth within the industrial sector.

The services sector PMI came in at 52 points, marking 14 months of consecutive growth, though down from February’s 55.3 points. Educational services contributed significantly to the expansion, while professional, scientific, and technical services, as well as accommodation and food services, showed contraction. In agriculture, the PMI stood at 52.8 points, continuing a 20-month expansion streak, with forestry leading and farming activities and new orders performing strongly at 54.1 and 53.8 points.

Despite broad-based growth, rising input costs are putting pressure on profit margins. The composite input price index stood at 64.1 points compared with 60.6 points for output prices across sectors. In agriculture, input costs climbed to 67.1 points against 60.4 for output prices. The report indicates that while businesses are maintaining expansion, cost pressures are moderating the pace of growth.

Overall, the first quarter points to continued economic expansion, albeit at a slower rate. The March PMI survey, conducted between March 9 and 13, collected responses from 1,900 purchasing and supply executives across industry, services, and agriculture sectors. Analysts suggest that businesses are navigating rising costs while sustaining operations, highlighting a cautious but resilient economic environment.

source: The guardian