Nigeria’s economy sustained its growth trajectory in September 2025, as the Purchasing Managers’ Index (PMI) climbed to 54.0 points, indicating a stronger expansion in business activity across key sectors.
Gatekeepers News reports that according to the latest PMI report by the Central Bank of Nigeria (CBN), the composite index rose from 51.7 points in August, marking the tenth consecutive month of growth and reflecting broad-based expansion across the industry, services, and agriculture sectors.
The report underscores Nigeria’s economic resilience through the third quarter of 2025, with firms reporting higher output, stronger demand, and faster supply chain performance.
Broad-Based Expansion Across Sectors
The composite PMI growth in September was mirrored across its three major sectoral indices — Industry, Services, and Agriculture — all showing improved business conditions.
Key activity indicators recorded solid gains:
• 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
Out of 36 subsectors surveyed, 28 expanded, while 8 recorded mild contractions. The Forestry subsector led the pack with a robust 73.6 index points, whereas Nonmetallic Mineral Products posted the weakest performance at 40.7 points.
Industry Sector Returns to Growth
The Industry Sector PMI rebounded to 51.4 points in September, up from 49.1 points in August, signifying a return to expansion after a brief contraction.
Of the 17 industrial subsectors surveyed, 11 expanded, led by Printing & Related Support Activities with 59.4 points, while 6 subsectors recorded slight contractions.
Key indicators in the sector were:
• Output: 51.6 points
• Employment: 51.9 points
• Raw Materials Inventory: 51.1 points
• Suppliers’ Delivery Time: 54.6 points
Although New Orders contracted slightly at 49.4 points, overall industrial activity remained positive, driven by better production output and improved labor engagement.
Services Sector Sustains Growth Momentum
The Services Sector maintained its strong performance for the eighth straight month, posting 54.7 points in September.
All major sub-indices expanded — Business Activities (56.3), New Orders (55.1), Employment (54.1), and Inventories (53.2) — indicating consistent demand and steady job creation.
Out of 14 subsectors, 12 reported growth, led by Educational Services (65.8 points), while Professional, Scientific & Technical Services recorded a mild contraction at 45.6 points.
Agriculture Sector Remains Growth Leader
The Agriculture Sector PMI rose to 54.8 points, marking its fourteenth consecutive month of expansion and reinforcing its position as the economy’s best-performing sector.
Growth was broad-based, with all five subsectors recording expansion. Key sub-indices included:
• General Farming Activities: 55.4 points
• New Orders: 55.9 points
• Employment: 53.4 points
• Raw Materials Inventory: 54.5 points
The Forestry subsector led with a remarkable 73.6 points, underscoring the sector’s pivotal contribution to national output.
Price Trends: Input Costs Still Elevated
Across all sectors, input prices continued to outpace output prices, highlighting persistent cost pressures faced by businesses.
Sector
Input Price Index
Output Price Index
Composite
64.2
59.9
Industry
63.1
58.3
Services
62.9
60.7
Agriculture
68.4
60.2
The agriculture sector recorded the highest input cost pressures, while services posted the highest output prices for the month. Conversely, the industry sector saw the lowest output prices, suggesting competitive pricing amid moderate cost adjustments.
Why It Matters
The PMI — a key gauge of economic activity — signals expansion when above 50 points. Nigeria’s 54.0 reading in September reflects continued improvement in output, new orders, and employment, pointing to growing business confidence and stabilising macroeconomic conditions.
With sustained momentum across agriculture, services, and industry, the data reinforces optimism that Nigeria’s post-tightening economic recovery is gaining traction as the country moves into the final quarter of 2025.
