Nigeria’s private sector ended 2025 on a strong note, recording the fastest pace of expansion seen during the year, according to the latest Purchasing Managers’ Index (PMI) report released by the Central Bank of Nigeria (CBN). The composite PMI rose to 57.6 points in December, up from 56.4 points in November, signalling broader and stronger business activity across the economy.
The PMI is a widely watched indicator of economic health for the private sector. A reading above 50 points indicates growth, while a figure below 50 suggests contraction. The December figure of 57.6 not only marks the thirteenth consecutive month of expansion but also represents the strongest expansion signal recorded so far in 2025.
Detailed data from the report showed improvements across several key sub-indices. The Output Index rose to 60.0 points, reflecting higher production levels, while the New Orders Index climbed to 58.7, indicating stronger demand conditions. These gains suggest that businesses are both producing more and seeing greater customer orders.
Employment also showed positive momentum, with the Employment Index rising to 54.2 points, pointing to continued job creation in the private sector. Inventory levels of raw materials increased to 54.5 points, and the Suppliers’ Delivery Time Index improved to 58.2 points, indicating more reliable supply chains and faster deliveries.
Across different sectors, the report noted broad-based expansion. The industry sector PMI settled at 57.0 points, with 14 out of 17 industrial subsectors recording growth, suggesting robust activity in manufacturing and related industries. Transportation equipment saw strong growth, while a few areas such as paper products experienced marginal contraction.
The services sector continued to expand, with its PMI at 56.4 points, marking eleven straight months of growth. The agriculture sector remained one of the strongest performers, with a PMI of 58.5 points, extending its growth streak to seventeen consecutive months, the longest in the series.
The December PMI figures point to a broad and sustained recovery across Nigeria’s main economic sectors. Rising output, stronger demand, improved supply conditions and steady employment growth all reflect growing confidence among businesses as the year drew to a close. Analysts say these trends are positive for the outlook as the country moves into 2026, with private-sector activity gaining momentum.
Despite the upbeat PMI data, the CBN’s survey also highlighted ongoing challenges faced by firms, such as insecurity, high taxes and unreliable power supply. These issues were reported as the top constraints on business operations even amid improved growth expectations.
Overall, the latest PMI reading reinforces expectations that Nigeria’s private sector is on a steady recovery path, supported by resilient consumer demand and more efficient logistical conditions. The broad-based expansion across industry, services and agriculture gives policymakers and investors some optimism as they look ahead to economic performance in the new year.
