Nigeria’s economic recovery gains momentum as PMI rises to 52.3 in March

BY MOTOLANI OSENI

Business confidence in Nigeria strengthened further in March 2025 as the Central Bank of Nigeria’s (CBN) latest Purchasing Managers’ Index (PMI) climbed to 52.3 points, up from 51.4 in February—signalling a sustained recovery in private sector activity.

The new data marks the third consecutive month of expansion in business activity, reflecting rising customer demand, increased output, and a broader commitment to new projects across key sectors. According to the CBN, the expansion was broad-based, with the Industry, Services, and Agriculture sectors all recording positive momentum during the month.

“The composite PMI for March 2025, at 52.3 index points, indicates a continuation of growth in economic activity across the country,” the apex bank noted in its latest report.

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Agriculture led the growth with a robust PMI of 54.7 points, driven by improved supply conditions and stable input costs. The Services and Industry sectors each posted a PMI of 51.5 points, suggesting sustained expansion amid resilient domestic demand and ongoing investment activity.

Sub-indices also pointed to solid business fundamentals. The Output Index stood at 52.8, indicating increased production levels. The New Orders Index rose to 52.2, highlighting stronger demand, while the Employment Index posted 51.7—its third monthly rise—suggesting steady job creation and stronger hiring intentions among businesses.

Of the 36 sub-sectors tracked, 24 recorded growth, with Forestry emerging as the fastest-growing sub-sector. However, 12 sub-sectors contracted, with nonmetallic mineral products seeing the steepest decline.

While inflationary pressures persisted—particularly input cost increases in the Industry sector and output price inflation in Services—the Agriculture sector offered some relief, posting the lowest cost increases across input and output categories.

The CBN said the continued expansion in PMI underscores growing resilience in the Nigerian economy despite persistent structural challenges. Analysts say the consistent uptick in business activity, job creation, and order books suggests firms are positioning for future growth, buoyed by improving macroeconomic conditions.

The March PMI performance reinforces expectations of a gradual but steady economic recovery, supported by improving investor sentiment and stronger private sector participation.