Nigeria’s economy maintained its upward growth momentum in September 2025, as the Purchasing Managers’ Index (PMI) climbed to 54.0 points, signaling stronger expansion in business activity across key sectors.
According to the latest Central Bank of Nigeria (CBN) report, the index rose from 51.7 points in August, marking the tenth consecutive month of economic expansion.
The sustained improvement reflects broad-based growth across the Industry, Services, and Agriculture sectors, highlighting Nigeria’s economic resilience through the third quarter of 2025.
Broad-Based Expansion Across Sectors
The Composite PMI and its major sectoral indices showed positive readings across all key components:
- Output Index: 54.8 points
- New Orders Index: 53.7 points
- Employment Index: 53.4 points
- Raw Materials Inventory: 52.9 points
- Suppliers’ Delivery Time: 54.6 points
These figures reflect higher production, improved demand, and more efficient supply chain operations, indicating that businesses are operating at higher capacity.
Out of 36 subsectors surveyed by the CBN, 28 recorded growth, while 8 posted mild contractions. The Forestry subsector led the expansion with an impressive 73.6 points, while Nonmetallic Mineral Products experienced the sharpest decline at 40.7 points.
Industry Sector Rebounds to Growth
The Industry Sector PMI rebounded to 51.4 points in September from 49.1 in August, marking a return to expansion after a brief contraction.
Of the 17 industrial subsectors, 11 expanded, led by Printing & Related Support Activities with 59.4 points. Six subsectors recorded slight declines, with Nonmetallic Mineral Products again ranking weakest at 40.7 points.
Key indicators in the sector showed:
- Output: 51.6 points
- Employment: 51.9 points
- Raw Materials Inventory: 51.1 points
- Suppliers’ Delivery Time: 54.6 points
While New Orders slightly contracted at 49.4 points, overall industrial activity remained positive, supported by better production and labor performance.
Services Sector Sustains Solid Growth
The Services Sector maintained steady expansion for the eighth consecutive month, posting 54.7 points in September.
All major indicators advanced:
- Business Activities: 56.3
- New Orders: 55.1
- Employment: 54.1
- Inventories: 53.2
Out of 14 subsectors, 12 recorded growth, led by Educational Services (65.8 points). However, Professional, Scientific & Technical Services contracted slightly at 45.6 points.
Agriculture Sector Leads Economic Expansion
The Agriculture Sector PMI rose to 54.8 points, marking its fourteenth consecutive month of expansion and maintaining its position as the country’s best-performing sector.
All five agricultural subsectors expanded, with Forestry recording a remarkable 73.6 points, underscoring strong sectoral output.
Key sub-indices included:
- General Farming Activities: 55.4
- New Orders: 55.9
- Employment: 53.4
- Raw Materials Inventory: 54.5
Rising Input Costs and Output Prices
Across all sectors, businesses continued to face higher input costs compared to output prices, indicating persistent inflationary pressure.
- Composite Input Price Index: 64.2 points
- Composite Output Price Index: 59.9 points
By sector:
- Industry: Input 63.1 | Output 58.3
- Services: Input 62.9 | Output 60.7
- Agriculture: Input 68.4 | Output 60.2
The Agriculture sector recorded the highest input costs, while Services posted the highest output prices in September.
Why It Matters
A PMI above 50 points indicates expansion in business activity. Nigeria’s 54.0 reading in September demonstrates continued growth in production, new orders, and employment reflecting renewed investor confidence and improved supply chain efficiency.
Analysts say the consistent growth signals that Nigeria’s post-tightening economic recovery is gaining strength, positioning the country for a robust finish to 2025.
A 9am News report notes that with strong performances in agriculture, services, and industry, Nigeria’s economic outlook remains upbeat as policymakers focus on maintaining stability and sustaining productivity growth.
Stay tuned to 9am News Nigeria for more Breaking News, Business News, Sports updates And Entertainment Gists.
