Nigeria’s economy sustains growth as PMI rises to 53.2 points

•Industry, agriculture strengthen expansion; services growth slows By Emma Ujah, Abuja Bureau Chief Nigeria’s economy sustained its growth momentum in October 2026, with the Composite Purchasing Managers’ Index (PMI) rising to 53.2 points from 53.0 points in September, indicating a fifth consecutive month of expansion in economic activities. The latest PMI report released by the Central Bank of Nigeria, CBN, yesterday, showed that growth was recorded across the three major sectors of the economy — Industry, Services and Agriculture — although the pace of expansion varied, with Agriculture maintaining its position as the best-performing sector.

The report indicated that 24 of the 32 subsectors surveyed expanded during the review month, while eight contracted, pointing to a broad-based improvement in business activities. A breakdown of the sectoral performance showed that the Industry PMI rose to 52.6 points in October from 52.0 points in September, representing a third consecutive month of expansion in industrial activities.

Of the 16 industrial subsectors surveyed, 12 recorded expansion, while four contracted. Similarly, the Agriculture PMI increased significantly to 54.7 points from 53.1 points in September, extending the sector’s uninterrupted expansion streak to 27 months. All five agricultural subsectors surveyed recorded growth during the period, making agriculture the strongest-performing sector in the economy.

Livestock recorded the highest PMI at 56.4 points, while Agricultural Support Services recorded the lowest at 52.0 points. General Farming Activities, New Orders, Employment and Inventories remained in expansion, at 56.8, 55.6, 52.9 and 53.6 points, respectively However, the Services sector recorded a marginal moderation in growth, as its PMI declined to 52.7 points in October from 53.2 points in September.

Despite the decline, the sector sustained its expansion for the fourth consecutive month, with seven of the 11 subsectors surveyed recording growth, while four contracted. Further analysis of the report showed improvements in key indicators of economic activity, including output, new orders, employment and raw materials inventory. The Output Index rose to 53.5 points in October, while the New Orders and Employment indices increased to 52.1 points and 52.7 points, respectively.

The Raw Materials Inventory Index also improved to 51.8 points from 51.1 points in September, remaining above the 50-point threshold that separates expansion from contraction. The improvement in new orders and employment suggests that businesses experienced increased demand and continued to expand their workforce during the review period. However, businesses continued to contend with rising costs, as the Composite Input Price Index increased by 0.7 points, while the Output Price Index rose by 0.5 points.

A sectoral breakdown showed that input price indices increased in Services and Agriculture but declined in Industry. On the output price front, the indices increased in Industry and Agriculture but declined in Services. The October PMI performance therefore points to a sustained improvement in economic activities, with stronger growth in Industry and Agriculture compensating for the slight moderation in Services.

The continued expansion in output, new orders, employment and inventories also indicates improving business conditions, although rising input and output prices remain areas of concern for businesses and policymakers.