Nigeria’s economy expansion persisted in January 2025, as the CBN reported a PMI of 50.2 points.
While industry and agriculture saw steady growth, supply chain delays and a struggling services sector highlighted ongoing challenges.
The industry sector achieved a PMI of 51.3 points, with transportation equipment leading the expansion.
Additionally, businesses increased employment and output, reflecting cautious optimism.
However, supply chain disruptions persisted, as companies reduced raw material stock levels and suppliers took longer to deliver goods.
Meanwhile, the agriculture sector remained a bright spot, posting a PMI of 52.5 points.
Farmers boosted crop production, driving overall sector growth, while forestry activities declined.
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Furthermore, businesses in the sector reported higher output, new orders, and employment, signalling steady progress in farming activities.
Economic Resilience
On the other hand, the services sector continued to contract, registering a PMI of 48.6 points.
While entertainment industries, including cinema and music production, experienced growth, transportation and warehousing suffered sharp declines.
Moreover, businesses in the sector reported falling business activity, employment, and new orders, reflecting ongoing challenges.
Since the PMI serves as a crucial economic indicator, its readings above 50.0 points signal expansion, whereas lower figures indicate contraction.
Despite ongoing hurdles, Nigeria’s economy continues to show resilience, with industry and agriculture driving growth.
However, as the struggling services sector lags behind, the pace of recovery remains uncertain.
