Nigeria’s business activities maintained an upward trajectory in July 2025 as the composite Purchasing Managers’ Index (PMI) strengthened to 52.7 index points, marking the eighth consecutive month of expansion across key sectors of the economy.
According to the latest PMI report released by the Central Bank of Nigeria (CBN), out of the 36 subsectors surveyed, 26 recorded expansion in economic activity, reflecting sustained resilience in the private sector despite tight financial conditions and consumer demand pressures.
The industry sector recorded an index of 51.1 points in July, extending its expansionary run to the eighth consecutive month. Out of the 17 sub sectors reviewed, 11 posted activity growth buoyed by increased production levels. However, analysts observed that momentum in the industrial space moderated slightly compared to June, owing to weaker consumer demand that weighed on new orders.
At 52.8 index points, the services sector witnessed its sixth consecutive month of expansion, reaching its strongest level in 19 months. Ten subsectors recorded growth in July, with Finance and Insurance, ICT, and Education among the key drivers. The report attributed the service improvement to a pick-up in business activity and new orders.
Similarly, the agriculture sector sustained its dominance, expanding for the 12th consecutive month at 53.9 index points—all five sub sectors recorded growth, supported by increased farming activities. However, the sector’s PMI eased compared to the previous month, reflecting seasonal slowdown and inventory build-up during the lean season.
The report also highlighted that the agriculture sector recorded the widest input and output price gap at 8.6 points, underscoring the cost pressures faced by farmers. In contrast, the services sector posted the lowest gap at 4.8 points, reflecting relative price stability.
According to analysts, the broad-based expansion signaled resilience in the economy, particularly with the naira stabilising and inflation pressures moderating. Analysts at Cordros Research however, cautioned that seasonal headwinds in agriculture, coupled with tight financial conditions, could weigh on momentum in the coming months.
“While the PMI reading remains in expansionary territory, the industrial sector is still contending with weak consumer demand, while agriculture faces seasonal constraints. Services, however, appear to be the strongest growth anchor at the moment” the analysts noted in an emailed note.
