Nigeria's Private Sector Expands for 3rd Month, Businesses Optimistic
- The CBN composite PMI climbed to 52.7 in August, up from 51.1 in July, marking three straight months of private-sector growth
- Agriculture recorded 25 consecutive months of expansion while the industrial sector returned to growth for the first time in four months
- A separate Stanbic IBTC and S&P Global survey also rose sharply in August, pointing to broader momentum across the private sector
PAY ATTENTION: Find it fast with our new search feature at Legit.ng!
Nigeria's private sector grew for the third month running in August, according to the Central Bank of Nigeria's latest Purchasing Managers' Index report, with the composite reading climbing to 52.7 points from 51.1 in July.
The CBN's Statistics Department released the data after surveying purchasing and supply executives at 1,900 companies across the industry, services, and agriculture sectors.
Source: Getty Images
A reading above 50 indicates expansion in business activity.
Services and Agriculture Drive Growth
The services sector posted a PMI of 53.3 in August, its second consecutive month of expansion. Nine of the 11 services subsectors surveyed recorded growth, with administrative and support services leading the pack. Professional, scientific and technical services turned in the weakest performance within the sector.
Agriculture remained the most consistent performer, with its PMI rising to 53.4 in August. All five agricultural subsectors expanded during the month, and the sector has now recorded growth for 25 months in a row. General farming registered a particularly strong PMI of 56.5, while new orders, employment, and inventories across agriculture all held above the 50-point threshold.
Industry Recovers but Remains Fragile
The industrial sector returned to expansion in August after four consecutive months of contraction, though the recovery was narrow. Its PMI came in at 50.6, barely above the expansion threshold, with only five of the 16 industrial subsectors recording growth.
High production costs, unstable power supply, and uneven consumer demand continue to weigh on manufacturers, limiting their ability to scale output and add jobs. The breadth of the industrial recovery remains far weaker than what has been seen in services and agriculture.
On pricing, the composite input price index eased by 0.2 points in August, but the output price index rose by one point over the same period.
The gap suggests that even as firms faced slightly lower input cost increases, many continued to pass higher prices on to consumers, which could keep inflation elevated.
Source: UGC
A separate PMI survey by Stanbic IBTC and S&P Global, which covered about 400 companies across agriculture, mining, manufacturing, construction, wholesale, retail, and services, rose to 54.3 in August from 52.5 in July.
That reading was the strongest in roughly 29 months, driven by a pickup in new orders and output.
Together, both surveys point to improving conditions in Nigeria's private sector, though the industrial recovery remains uneven. For policymakers, the weak showing from industry underlines the need to address electricity supply, logistics, and credit access if manufacturers are to meaningfully contribute to job creation and economic growth.
Source: Legit.ng
