Nigeria’s economic recovery gained further momentum in September, with business activity expanding at a faster pace as industrial output rebounded and other major sectors maintained positive growth.
The Central Bank of Nigeria’s Purchasing Managers’ Index, PMI, report for September 2026 showed that the Composite PMI increased to 53.0 points, compared with 52.7 points recorded in August.
The latest figure represents the fourth consecutive month of expansion in overall economic activity and points to continued improvement in business conditions across the private sector.
The PMI is a monthly economic indicator used to assess activity and performance across the manufacturing and services sectors, with readings above 50 points indicating expansion and figures below 50 showing contraction.
According to the CBN report, 23 of the 32 economic subsectors surveyed recorded an increase in business activity during September, while nine subsectors reported declines.
The industrial sector was one of the major drivers of the improvement during the month. Its PMI climbed sharply to 52.0 points from 50.6 points in August, marking the second consecutive month of expansion.
The apex bank said 10 of the 16 industrial subsectors covered by the survey recorded positive growth in September, reflecting an improvement in activity within the sector.
The services sector, meanwhile, experienced a marginal decline in its PMI but remained firmly within expansion territory. Its index stood at 53.2 points in September, compared with 53.3 points in August.
Despite the slight month-on-month decline, the services sector recorded its third consecutive month of expansion and continued to play a major role in supporting overall economic activity.
Growth in the services sector was relatively broad-based, with nine of the 11 subsectors surveyed reporting increases in activity during September.
The agricultural sector also maintained its strong performance, recording a PMI of 53.1 points in September. Although this represented a slight decline from the 53.4 points recorded in August, the sector extended its expansion streak to 26 consecutive months.
According to the CBN, four out of the five agricultural subsectors surveyed recorded growth during the month, highlighting the sector’s continued resilience despite the marginal decline in its overall index.
However, the latest PMI figures also point to some pressure on businesses, particularly as input costs continue to rise while companies face challenges in increasing their selling prices.
The CBN reported that the Composite PMI input price index increased by 0.8 points in September, while the output price index declined by 0.5 points. The bank attributed the price movements largely to developments in the industrial sector during the month.
The divergence between rising input costs and falling output prices suggests that businesses are coming under increasing pressure to absorb higher expenses, including the cost of raw materials and logistics, while keeping prices competitive enough to sustain consumer demand.
Despite these challenges, the overall September PMI remained positive, with the CBN describing the latest performance as evidence of a strengthening recovery in economic activity.
The apex bank said the expansion was supported by continued growth in the services and agricultural sectors, alongside the improved performance recorded in the industrial sector.
The September figures therefore indicate that economic activity has remained in expansionary territory for four consecutive months, although rising business costs remain an issue that could affect profitability if the trend persists.
SOURCE: VANGUARD
