Purchasing Managers’ Index Slows To 53.2 As Prices Rise In March

The Purchasing Managers’ Index (PMI) report for March 2026, released by the Central Bank of Nigeria (CBN), showed that Nigeria’s economy sustained expansion for the 16th consecutive month, though growth moderated from the previous month.

According to the report, the composite PMI stood at 53.2 index points in March 2026, down from 56.3 in February, indicating a slower but continued expansion in overall economic activity.

The sectoral breakdown of the report showed that all three major sectors remained in expansion territory. The industrial sector led with a PMI of 54.0 points, followed by agriculture at 52.8 points, while the services sector recorded 52.0 points.

The report further revealed that 31 out of the 36 subsectors surveyed recorded growth during the review period. In the industrial sector, 14 of the 17 subsectors expanded, while 12 of the 14 subsectors in the services sector recorded growth. The agricultural sector posted expansion across all five subsectors.

On key indicators, the CBN data showed that the output level index stood at 55.6 points in March, reflecting increased production. The new orders index was recorded at 53.1 points, indicating sustained growth in demand.

The employment level index stood at 52.1 points, indicating continued hiring by firms, while the stock of raw materials index came in at 54.5 points, suggesting that businesses increased inventories to support production.

However, the report highlighted mounting cost pressures. The input price index rose to 64.1 points, significantly higher than the output price index of 60.6 points, indicating that businesses continued to face rising input costs, which were only partially passed on to consumers.

The supplier delivery time index stood at 54.2 points, indicating slower supplier delivery times, while the backlog of orders index was recorded at 51.5 points, suggesting a slight accumulation of unmet orders.

Commenting on the PMI, analysts at Cordros Research note that private sector activity is expected to moderate further as elevated energy and food costs sustain inflationary pressures, while a cautious monetary policy stance is likely to keep financial conditions tight, weighing on near-term economic growth.