Industrial activity dips to 49.1 as 10 subsectors shrink
The Central Bank of Nigeria (CBN) has reported a slowdown in Nigeria’s industrial sector, with activities contracting to 49.1 index points in August 2025.
According to the Purchasing Managers Index (PMI) Report, 10 out of 17 subsectors surveyed saw a decline. Key indicators — Output (49.6), New Orders (47.2), and Employment (48.9) — all showed negative trends.
Even the Stock of Raw Materials index dropped to 48.9, reflecting tighter conditions for manufacturers. The only bright spot was Suppliers’ Delivery Time, which improved to 52.4, indicating faster deliveries.
“Transportation Equipment” led in growth, while “Paper Products” faced the steepest contraction.
Services and agriculture still holding strong
Despite the industrial dip, the services and agriculture sectors held steady. The Service Sector expanded for the seventh straight month, with a PMI of 51.9, while Agriculture marked its 13th consecutive month of growth, hitting 53.9.
In the agriculture space, all five subsectors recorded positive growth — a strong sign for food production and rural employment.
The Services Sector saw 10 out of 14 subsectors post gains in August.
Overall economy keeps expanding
The broader economy continued to grow, with the Composite PMI standing at 51.7 index points — showing expansion for the ninth consecutive month.
Out of the 36 total subsectors tracked in the CBN survey, 22 recorded growth in economic activity.
“Overall, the August 2025 PMI data indicated a continued expansion in economic activities across Nigeria,” the CBN said.
Price pressures still hitting industry the hardest
While growth continues in some areas, price pressures remain. The industrial sector recorded the largest gap between input and output prices at 7.4 points, suggesting producers are still struggling with rising costs.
In contrast, the services sector had the lowest price gap at 3.7 points, indicating more price stability.
Bottom line
Although Nigeria’s industrial sector is cooling off, the services and agriculture sectors are keeping the economy in positive territory. But rising production costs and weak new orders could become long-term drags if not addressed.
The CBN sees this continued expansion as a good sign for Q3 2025, especially if inflation is kept in check and support for key sectors continues.
