Nigeria's private sector concluded the year 2025 with a significant surge in growth momentum, according to the latest economic data. The Central Bank of Nigeria (CBN) reported that the headline Purchasing Managers' Index (PMI) climbed to 57.6 points in December, up from 56.4 points recorded in November. This marks the most robust monthly expansion signal for the entire year.
Sector-Wide Expansion and Key Drivers
The December 2025 reading represents the thirteenth consecutive month of growth in business activity across the country. The CBN survey, which covers 36 key subsectors of the economy, found that an impressive 32 subsectors reported growth during the month. The expansion was primarily fueled by two critical factors: a sustained increase in output and a faster rate of new orders.
Companies participating in the survey cited noticeably improved demand conditions, which directly translated into higher levels of production and sales. To meet this rising customer demand, firms actively stepped up their operational output. The report characterized the pace of this output expansion as solid, continuing a positive trend established over recent months.
Employment and Sectoral Performance
Employment conditions remained in positive territory, with businesses continuing to hire additional staff. Job creation was supported by increased workloads and the necessity to maintain output growth, although the pace of hiring was described as modest. Some firms indicated a degree of caution due to concerns about longer-term cost pressures.
The growth was remarkably broad-based, touching all major segments of the Nigerian economy:
- Agriculture: Emerged as the top-performing sector, with its PMI rising to 58.5 points. This extended the sector's expansion streak to an incredible seventeenth consecutive month, driven by robust farming activities across all five agricultural subsectors.
- Industry: The industrial sector recorded its strongest expansionary reading since March 2020, with a PMI of 57.0 points. Growth was widespread, with 14 out of the 17 industrial subsectors surveyed reporting increased activity.
- Services: This sector maintained its growth momentum for the eleventh month in a row. Business activity rose in 13 of the 14 subsectors covered, underscoring a resilient and expanding services market.
Cost Pressures and Business Outlook
While the expansion narrative was dominant, the report also noted ongoing challenges. Input costs continued to rise in December, attributed to higher prices for raw materials, transportation, and energy. However, there was a silver lining: the rate of this cost increase showed signs of easing compared to the sharper rises witnessed in earlier months.
This moderation helped slow the pace of increase in output prices. Firms demonstrated a strategic balance, absorbing some of the higher costs to remain competitive while passing a portion on to their customers.
Looking ahead, business sentiment among respondents was predominantly optimistic. Many firms expressed positive expectations for the coming months, anticipating further improvements in demand and a more stable operating environment. Nevertheless, significant concerns were highlighted, particularly regarding exchange rate volatility and persistent operating costs, which were identified as potential headwinds that could impact future performance.
The CBN reiterated that any PMI reading above the 50-point threshold indicates an expansion in business activity. The December figure of 57.6 not only confirms expansion but highlights the improving resilience and momentum within Nigeria's private sector, even amidst lingering macroeconomic challenges.
