Economy
Private Sector Grows for Third Month – CBN
Private sector activity in Nigeria continued to show signs of growth in March 2025, as the Central Bank of Nigeria (CBN) reported a Purchasing Managers’ Index (PMI) reading of 52.3, up from 51.4 recorded in February. This marks the third consecutive month that the PMI has remained above the 50-point benchmark, signaling ongoing expansion in economic activity.
The CBN attributed this upward trend to stronger customer demand and the consistent rollout of new business projects. The improvement was observed across the country’s three primary economic sectors. The Agriculture sector recorded the highest growth with a PMI of 54.7. Both the Industry and Services sectors also maintained a positive trajectory, each posting a PMI of 51.5, which indicates moderate but steady expansion.
Supporting indicators also reflected a continuation of this positive trend. The Output Index rose to 52.8, indicating increased levels of production. New business activity was also on the rise, as seen in the New Orders Index, which reached 52.2. Meanwhile, employment in the private sector continued to grow, with the Employment Index standing at 51.7, suggesting businesses are gradually expanding their workforce.
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Out of 36 subsectors tracked during the period under review, 24 recorded growth in business activity. Forestry emerged as the fastest-growing subsector. On the other hand, 12 subsectors reported a decline, with Nonmetallic Mineral Products experiencing the sharpest contraction.
The report also highlighted sector-specific trends in pricing and cost pressures. The Industry sector recorded the highest input cost inflation, while the Services sector reported the highest increase in output prices. In contrast, the Agriculture sector saw the most stable pricing environment, with relatively mild increases in both input and output costs.
Overall, the latest PMI reading underscores a cautiously positive outlook for Nigeria’s private sector. Rising demand, stable production, and a growing workforce suggest that businesses are positioning for continued activity despite underlying inflationary concerns, particularly in the industrial and service-driven segments of the economy.
