The Central Bank of Nigeria's latest Purchasing Managers' Index report shows the country's private sector grew for the third consecutive month in August, with the composite reading climbing to 52.7 points from 51.1 in July. The data, released by the CBN's Statistics Department, was compiled after surveying purchasing and supply executives at 1,900 companies across the industry, services, and agriculture sectors. A reading above 50 signals expansion in business activity, and the latest figure confirms sustained momentum in the broader economy.
Services and Agriculture Drive Growth
The services sector posted a PMI of 53.3 in August, marking its second consecutive month of expansion. Nine of the 11 services subsectors surveyed recorded growth, with administrative and support services leading the way. Professional, scientific, and technical services turned in the weakest performance within the sector, according to the report.
Agriculture remained the most consistent performer, with its PMI rising to 53.4 in August. All five agricultural subsectors expanded during the month, and the sector has now recorded growth for 25 months in a row. 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.
Industry Recovers but Remains Fragile
The industrial sector returned to expansion in August after four consecutive months of contraction, though the recovery was narrow. 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, limiting 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.
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, which could keep inflation elevated.
Broader Survey Confirms Momentum
A separate PMI survey by Stanbic IBTC and S&P Global, which covered 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.
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.
