Nigeria's economy expands for second consecutive month - CBN

The Purchasing Managers’ Index (PMI) for January 2025 stood at 50.2 points, signaling an expansion in economic activities for the second consecutive month, according to the latest report released by the Central Bank of Nigeria (CBN) on Friday.

The data reflected a positive trend in key sectors, including industry and agriculture, while the services sector experienced a contraction.

The breakdown of the index showed that the composite output, new orders, and employment levels recorded growth at 50.9, 50.2, and 50.2 points, respectively, reflecting an overall expansion during the review period. However, the composite stock of raw materials declined to 49.8 points, while the suppliers’ delivery time slowed further to 49.6 index points, suggesting delays in supply chains.

An analysis of the 36 sub-sectors reviewed across industry, services, and agriculture indicated that 17 sub-sectors reported growth in economic activities, with the transportation equipment sub-sector recording the highest expansion. Conversely, 17 sub-sectors experienced a decline, with forestry posting the steepest contraction, while two sub-sectors remained unchanged.

The industry sector PMI revealed that out of the 17 sub-sectors surveyed, 10 recorded expansions, six showed contractions, while the plastic and rubber products sub-sector remained stable.

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Transportation equipment emerged as the leading sub-sector in terms of expansion, whereas the Non-metallic mineral products sub-sector experienced the highest level of contraction. The overall industry sector index stood at 51.3 points, confirming an expansion in industrial activities for January 2025.

Further breakdowns in the industry sector indicated that output and employment levels grew, standing at 54.0 and 52.4 points, respectively. Meanwhile, new orders and stock of raw materials both declined to 49.6 points. Suppliers’ delivery time also remained sluggish, recording 49.6 index points.

Conversely, the services sector experienced contraction, as reflected in its PMI of 48.6 points for January 2025. Among the 14 sub-sectors assessed, only three recorded expansions, 10 experienced contractions, while the management of companies sub-sector remained stationary. Motion pictures, Cinema, Sound Recording, and Music Production recorded the highest expansion, whereas transportation and warehousing experienced the most significant contraction. Business activities (Output), new orders, stock of raw materials, and employment levels declined to 48.8, 48.6, 48.6, and 48.4 points, respectively, highlighting a slowdown in the sector.

The Agriculture sector, however, continued its positive trajectory, recording an overall index of 52.5 points, indicating expansion. Out of the five sub-sectors surveyed, four experienced growth, while one contracted. Crop production led in expansion, whereas forestry posted a decline. Additionally, output, new orders, employment, and stock of raw materials within the agriculture sector all reflected growth, standing at 51.8, 54.3, 51.3, and 52.4 index points, respectively.

The PMI is a critical economic indicator derived from business responses regarding changes in various aspects of their operations. A PMI reading above 50.0 points signals an expansion in business activities, while a reading below 50.0 points suggests contraction. An index of exactly 50.0 points signifies no change in economic conditions.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.