A recent report from the Central Bank of Nigeria (CBN) shows that Nigeria’s economic activities continued to grow for the second consecutive month in January 2025. The composite Purchasing Managers’ Index (PMI) stood at 50.2 points, signaling overall expansion.
The industry sector developed from a stationary position in December 2024 to an expansionary level in January 2025, with a PMI of 51.3 points. Notably, the transportation equipment sub-sector recorded the highest expansion, while non-metallic mineral products saw the most significant contraction. Employment and output levels also grew, standing at 52.4 and 54.0 points, respectively.
The agriculture sector continued its positive trend for the sixth consecutive month, recording a PMI of 52.5 points. Crop production led the expansion, while forestry experienced a decline. Growth was reflected in output, new orders, employment, and raw material stock levels.
However, the services sector experienced a contraction, with a PMI of 48.6 points. Out of 14 sub-sectors, only three recorded growth, while 10 declined. Motion pictures, cinema, and music production saw the highest expansion, while transportation and warehousing faced the steepest contraction.
Economic Indicators and Challenges
Key economic indicators, including composite output (50.9 points), new orders (50.2 points), and employment levels (50.2 points), showed moderate growth. However, the stock of raw materials (49.8 points) and suppliers’ delivery time (49.6 points) declined, indicating challenges in supply chains.
The report highlights Nigeria’s continued economic expansion but also underscores persistent supply chain disruptions and sectoral disparities, particularly in services.