Nigeria's private sector grows for third month as CBN PMI hits 52.7

The Central Bank of Nigeria's composite Purchasing Managers' Index climbed to 52.7 in August, up from 51.1 in July. That marks the third consecutive month of private sector expansion.

The CBN Statistics Department released the data after surveying purchasing and supply executives at 1,900 companies across industry, services, and agriculture. A reading above 50 indicates expansion in business activity.

Services and agriculture keep the momentum

The services sector posted a PMI of 53.3 in August, its second straight 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. Its PMI rose to 53.4 in August, and all five agricultural subsectors expanded during the month. The sector has now recorded growth for 25 consecutive months. 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.

Industrial recovery is narrow

The industrial sector returned to expansion in August after four consecutive months of contraction. 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. These factors limit 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.

Price pressures are still there

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. That could keep inflation elevated.

Stanbic survey also strengthens

A separate PMI survey by Stanbic IBTC and S&P Global, covering 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.

What it means for businesses

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.