Nigeria’s economic activity sustained a strong growth momentum in January 2026 as the Central Bank of Nigeria’s (CBN) composite Purchasing Managers’ Index (PMI) climbed to 55.7 points, signalling expansion for the fourteenth consecutive month.
This is according to the latest Purchasing Managers’ Index report released by the Central Bank of Nigeria.
The data points to broad-based improvement in business conditions at the start of the year, with expansion recorded across most sectors and subsectors of the Nigerian economy, reinforcing signs of a gradually strengthening recovery.
The January PMI reading remained comfortably above the 50-point benchmark that separates expansion from contraction, indicating continued improvement in output, demand, and business confidence across agriculture, industry, and services.
What the data is saying
The latest PMI data highlights widespread economic expansion across key segments of the economy during the review period. Out of the 36 subsectors captured in the CBN survey, 31 recorded growth, underscoring the breadth of the recovery.
- The composite PMI stood at 55.7 points in January 2026, marking the fourteenth consecutive month of expansion.
- The industry sector posted a PMI of 56.0 points, with 14 of the 17 industrial subsectors recording growth in production and related activities.
- The services sector recorded a PMI of 54.5 points, extending its expansion streak to twelve consecutive months, with 12 out of 14 subsectors reporting growth.
- Agriculture recorded a PMI of 54.2 points, marking the eighteenth straight month of expansion, with all five agricultural subsectors surveyed posting positive growth.
Overall, the PMI readings point to sustained demand conditions and improving operating environments across multiple layers of the economy, reinforcing optimism around near-term economic performance.
More insights
Sectoral performance data from the January PMI survey reveals notable resilience across the three major pillars of the economy, despite lingering structural constraints.
- The industry sector’s expansion reflects sustained activity in manufacturing and related segments, supported by steady demand and improved production conditions.
- In the services sector, continued growth points to resilience in trade, transportation, and professional services, which have remained critical drivers of economic activity.
- The agriculture sector’s prolonged expansion streak highlights consistent improvements in farming output, agro-processing, and value-chain-related activities, suggesting greater stability in food production and rural economic engagement.
The CBN noted that the broad-based expansion across agriculture, industry, and services reflects improving business confidence, supported by stable demand conditions and a gradual recovery in supply-side dynamics.
According to the apex bank, the performance of the PMI aligns with its broader objective of fostering price stability while supporting sustainable economic growth.
Flashback
Nigeria’s January 2026 PMI performance builds on a strong finish to the previous year, reinforcing the trend of sustained private sector expansion.
- Nairametrics earlier reported that Nigeria’s private sector expanded at its fastest pace in 2025 in December, when the composite PMI rose to 57.6 points.
- That December reading represented the strongest PMI performance of the year, reflecting heightened economic activity across sectors and setting a positive tone for the start of 2026.
- The January outcome, while slightly lower, indicates that momentum has been maintained rather than reversed.
The consistency of PMI readings above the 50-point threshold over several months suggests that economic expansion is becoming more entrenched rather than episodic.
What you should know
The Purchasing Managers’ Index is a key forward-looking indicator used to assess the health of the private sector, capturing changes in output, new orders, employment, supplier delivery times, and inventories.
- A reading above 50 points signals expansion, while readings below that threshold indicate contraction.
- The continued expansion across a wide range of subsectors suggests Nigeria’s economic recovery is gaining depth and resilience.
- However, structural challenges such as inflationary pressures, exchange rate volatility, and infrastructure constraints still require close policy attention to ensure the recovery is sustained.
- For policymakers, the sustained PMI expansion provides a positive signal, but it also demonstrates the importance of maintaining supportive macroeconomic conditions that can translate short-term business optimism into long-term economic stability and inclusive growth.
Latest CBN survey shows that insecurity, high taxes, and unreliable power supply remained Nigeria’s top business challenges, despite stronger confidence and growth expectations.
