The Central Bank of Nigeria (CBN) has reported that economic activities continued to expand for the sixth straight month, reaching 52.1 index points in May 2025.
In its Purchasing Managers Index (PMI) report for May, the CBN noted growth across the Industry (51.6 points), Services (51.7 points), and Agriculture (53.4 points) sectors.
The report highlighted that within the Industry sector, the Petroleum and Coal Products subsector experienced the highest expansion, while the Paper Products subsector recorded the steepest decline.
According to the CBN’s PMI:
The composite PMI at 52.1 points signals sustained economic growth.
Of the 36 subsectors surveyed across Industry, Services, and Agriculture, 20 showed growth, led by Petroleum & Coal Products, while 16 contracted, with Paper Products showing the largest decline.
In the Industry sector, which expanded for the fifth consecutive month, 9 of 17 subsectors grew, with Petroleum & Coal Products leading.
The Paper Products subsector declined most sharply.
The Services sector also expanded, driven by increased business activity.
Of its 14 subsectors, 7 grew, including Educational Services, which saw the highest growth. Transportation & Warehousing experienced the most significant contraction.
Agriculture marked its tenth consecutive month of expansion, fueled primarily by new orders. Four of its five subsectors grew, with Forestry showing the strongest expansion, while Fishing/Fish Farming contracted.
On input costs, the CBN noted that input price indices across all sectors were higher than output price indices, indicating businesses faced rising cost pressures.
This gap threatens profit margins and could lead to increased consumer inflation if sustained.
The Agriculture sector showed the highest cost absorption at 10.5 points, while Services recorded the lowest at 4.4 points.
Agriculture also had the highest input prices, with Industry and Agriculture sectors leading in output prices. Services recorded the lowest input and output price indices.
Overall, the May PMI data indicates a moderate but steady expansion in Nigeria’s economic activity, supporting a positive outlook for the second quarter of 2025.