Nigeria Economic Update, Issue 48

According to the Central Bank of Nigeria’s Purchasing Managers’ Index (PMI) report, Nigeria’s Composite PMI increased from 55.4 points in October 2025 to 56.4 points in November 2025. This increase marks twelve consecutive months of expansion, representing the strongest indication of private- sector growth so far in 2025. In the month under review, the industry sector PMI stood at 54.2 index points, while the service sector PMI rose to 56.8 points, up from the 55.6 points recorded in the previous month. Similarly, the agricultural sector expanded for the sixteenth consecutive month, standing at 58.2 index points, an increase from the 55.7 index points recorded in October 2025. The rise in private-sector activity was driven by higher production and increasing demand, signalling a broad-based strengthening of economic activity across all sectors. This positive trend also suggests that the increasing demand is likely to stimulate further production, raise employment levels, improve household incomes, and strengthen overall consumer confidence. However, this expansion carries potential inflationary risks and may affect affordability and broader economic stability. To mitigate these risks, efforts should be made to support small and medium-sized enterprises by providing access to affordable credit and capacity- building programmes. Furthermore, given the significant growth recorded in the agricultural sector, the government should invest in agricultural technology and improve value chains to enhance productivity and export capacity.

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