Nigeria's Economic Growth Moderates in March 2026, CBN Reports
The Central Bank of Nigeria (CBN) has released its latest Purchasing Managers' Index (PMI) survey, indicating that Nigeria's economy continued to expand in March 2026, albeit at a reduced pace. The composite PMI stood at 53.2 points, marking the 16th consecutive month of growth across key sectors. However, this figure represents a slowdown from the 56.4 points recorded in February 2026, suggesting a softer rate of expansion despite the ongoing positive trend.
Key Sector Performances and Expansion Details
According to the CBN survey, which covered 36 subsectors, 31 sectors experienced expansion, while five contracted. A PMI reading above 50 points signals growth, whereas below 50 indicates contraction. The industry sector demonstrated the strongest performance, with an index of 54 points, as 14 out of 17 subsectors expanded. Within this sector, production output, new orders, and employment recorded scores of 55.6, 53.1, and 52.1 points, respectively, reflecting improved activity levels. Supplier delivery time also improved, registering 56.3 points, though it was lower than February's 58 points.
In the services sector, the index came in at 52 points, marking its 14th consecutive month of growth, but down from 55.3 points in the previous month. Educational services were a key driver of expansion, while professional, scientific and technical services, along with accommodation and food services, recorded contractions. Despite this, output, new orders, employment, and inventories all remained above the 50-point threshold, indicating sustained activity.
The agriculture sector extended its expansion streak to 20 consecutive months, with a PMI of 52.8 points. All five subsectors recorded growth, led by forestry. Farming activities and new orders were particularly strong, at 54.1 and 53.8 points, respectively.
Rising Cost Pressures and Economic Implications
The report highlighted significant cost pressures, as input prices continued to outpace output prices across all sectors. The composite input price index stood at 64.1 points, compared to 60.6 points for output prices. In agriculture, input costs rose sharply to 67.1 points against 60.4 points for output prices, suggesting increasing pressure on profit margins for businesses in this sector.
Overall, the first quarter of 2026 points to broad-based but moderating growth, with businesses maintaining expansion amid rising costs. The March PMI survey was conducted between March 9 and 13, 2026, covering 1,900 purchasing and supply executives across the industry, services, and agriculture sectors. This data provides crucial insights into Nigeria's economic trajectory, emphasizing the need for monitoring inflationary trends and sectoral performances to sustain growth momentum.
