Nigeria’s economic activity continued to expand in September, with the Central Bank of Nigeria’s Composite Purchasing Managers’ Index (PMI) rising to 53.0 points, up from 52.7 points in August.
The latest figure means that the Nigerian economy recorded its fourth consecutive month of expansion, indicating that business activity continued to improve across several sectors during the third quarter of the year. A PMI reading above 50 points indicates expansion, while a reading below 50 signals contraction.
The CBN’s survey showed that 23 of the 32 subsectors monitored recorded growth in September, while nine subsectors experienced declines. The improvement was supported by stronger activity in industry, alongside continued expansion in services and agriculture.
The industrial sector recorded one of the strongest improvements during the month, with its PMI increasing from 50.6 points in August to 52.0 points in September. Ten of the 16 industrial subsectors surveyed recorded expansion.
The services sector also remained in positive territory, although its PMI eased slightly from 53.3 points in August to 53.2 points in September. Meanwhile, agriculture recorded 53.1 points, extending its expansion streak to 26 consecutive months.
However, the improving economic activity has not yet translated into a similar improvement in how many households perceive their financial situation.
A separate CBN survey showed that the proportion of households describing inflation as high increased sharply from 67.2 per cent in August to 77.2 per cent in September. Consumer sentiment also weakened, with households remaining cautious about major purchases such as cars, houses, investments and household appliances.
Businesses are also continuing to face significant challenges. Multiple taxation, insecurity and high interest rates were identified among the major constraints affecting companies, despite overall business confidence remaining positive.
The latest figures therefore present a mixed picture of Nigeria’s economy: economic activity is expanding, but households and businesses are still dealing with high living costs and operating pressures. The major challenge for the recovery will be ensuring that stronger economic activity eventually translates into improved purchasing power, employment and better living conditions for Nigerians.
