In January 2025, Nigeria’s economic activities expanded for the second month as indicated by a composite PMI of 50.2 points. The industry sector improved significantly, while agriculture continued its positive trend. However, the services sector contracted, with delays in supply chains affecting overall activity indices.
The Central Bank of Nigeria (CBN) has reported that Nigeria’s economic activities expanded for the second consecutive month, reflected in the composite Purchasing Managers’ Index (PMI) for January 2025, which registered at 50.2 index points. This indicates a positive trend in economic activities, particularly in the industry, agriculture, and services sectors. The Industry Sector noted a shift from stagnation in December 2024 to growth in January 2025, while the Agriculture Sector continued its expansion for the sixth month in a row.
In detail, the report showed significant activity across various sectors. The breakdown reveals composite output, new orders, and employment levels recorded improvements at 50.9, 50.2, and 50.2 points, respectively. However, the supply chain faced challenges with a decline in raw material stocks to 49.8 points and slower delivery times at 49.6 index points.
Analysis of 36 sub-sectors reported that 17 experienced growth, with transportation equipment leading this expansion. Conversely, 17 sectors faced declines, with forestry showing the steepest drop, while two remained unchanged. In the Industry Sector, out of the 17 sub-sectors, ten exhibited growth, while the plastic and rubber products sub-sector remained stable amid economic changes.
The Industry Sector’s PMI was reported at 51.3 points, indicating a positive expansion in industrial activities. Breakdowns highlighted growth in output and employment levels at 54.0 and 52.4 points, respectively. However, new orders and raw material stocks showed a reduction, remaining below the neutral threshold at 49.6 points, indicating supply challenges.
The Services Sector presented a contraction, with a PMI of 48.6 points. Out of 14 sub-sectors assessed, only three reported expansions, while ten faced declines. The transport and warehousing industry particularly suffered significant contractions, as output and employment metrics also fell short of previous levels.
Contrarily, the Agriculture Sector exhibited continued strength, achieving an overall index of 52.5 points. Four out of five surveyed sub-sectors indicated growth, with crop production leading. Key metrics in the agriculture sector including output, new orders, and employment all demonstrated positive growth, reinforcing the sector’s robust economic performance in January 2025.
The CBN’s report illustrates a mixed picture of Nigeria’s economy as it shows slight growth in overall activities driven largely by the industry and agriculture sectors. Despite this growth, challenges remain, especially in the Services Sector, which experienced contraction. The expansion in the agriculture sector confirms its role as a vital component of economic stability, while supply chain issues highlighted the need for improvements in raw material availability and delivery efficiencies.
Original Source: nairametrics.com
