Nigeria’s PMI hits 53.2, extends growth streak to 16 Months

By: Amarachi Okonkwo 

Nigeria’s economic recovery extended into March 2026 as business activity continued to expand for the sixteenth consecutive month, according to the Central Bank of Nigeria (CBN).

Data from the apex bank showed that the composite Purchasing Managers’ Index (PMI) stood at 53.2 points in March, indicating sustained growth in aggregate economic activity, although at a slower pace compared to the 56.4 points recorded in February.

An index reading above 50 points signals expansion in business conditions, while a figure below that threshold reflects contraction.

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The latest PMI report points to broad-based resilience across the economy despite lingering macroeconomic headwinds. Out of the 36 subsectors surveyed, 31 recorded expansion, underscoring widespread improvements in production levels, new orders, and overall business conditions.

The CBN noted that growth was recorded across all major sectors—industry, services, and agriculture highlighting the depth of the recovery. However, it cautioned that the rate of expansion moderated relative to the previous month, suggesting that underlying economic pressures continue to weigh on momentum.

“PMI for March 2026 recorded a sustained expansion in economic activity across all surveyed sectors; however, the rate of growth moderated relative to the level recorded in the preceding month,” the bank stated.

Sectoral analysis showed that the industry sector remained the primary driver of growth, posting a PMI of 54.0 points. Fourteen of the 17 subsectors under industry expanded during the month, with output rising to 55.6 points, new orders at 53.1, and employment at 52.1.

The services sector recorded a PMI of 52.0 points, marking its fourteenth consecutive month of expansion, as 12 of its 14 subsectors reported growth. Meanwhile, the agriculture sector sustained its strong performance with a PMI reading of 52.8 points, extending its expansion streak to 20 consecutive months, with all five subsectors recording growth.

Key activity indicators including new orders, employment levels, and inventories—remained above the 50-point benchmark across sectors, reflecting steady demand conditions and continued improvements in business operations.

Despite the positive trajectory, the data also highlighted emerging signs of moderation, pointing to persistent macroeconomic challenges. Analysts note that inflationary pressures, exchange rate volatility, and elevated borrowing costs continue to constrain the pace of expansion.

The slowdown from February’s stronger PMI reading suggests that while firms are still growing, the speed of improvement is easing.

Going forward, sustaining the current growth trend will depend largely on enhanced macroeconomic stability, improved foreign exchange liquidity, and stronger investor confidence.

The March PMI data reinforces the view that Nigeria’s economy remains on a recovery path, albeit one that is increasingly shaped by structural constraints and external pressures.