- A report from the Central Bank of Nigeria shows that economic activities expanded for the second consecutive month in January
- The composite Purchasing Managers’ Index for January stood at 50.2 index points
- The Industry, Services, and Agriculture sectors stood out in the period under review for their varying performances
Economic activities in Nigeria expanded for the second consecutive month in January 2025, according to a report from the Central Bank of Nigeria (CBN).
The report noted that January's composite Purchasing Managers’ Index (PMI) was 50.2 index points.
Recall that businesses faced worsening conditions in October with 46.9 index points and 49.6 index points in November 2024.
It should be noted that a PMI reading above 50.0 points signals an expansion in business activities, while a reading below 50.0 points suggests a contraction. An index of exactly 50.0 points signifies no change in economic conditions.
The report showed that the industry, services, and agriculture sectors stood out for their performance in the period under review.
The Industry Sector expanded in January 2025 from stationary in December 2024. On the other hand, there was a contraction in economic activities in the Services Sector, while the Agriculture Sector recorded the sixth consecutive month of expansion in January 2025.
The index also shows that composite output grew to 50.9 points, new orders increased to 50.2 points, and employment levels recorded growth at 50.2 points.
The composite stock of raw materials, however, declined to 49.8 points, and the suppliers’ delivery time slowed further to 49.6 index points, an indication of delays in supply chains.
Performance of 36 sub-sectors
The 36 sub-sectors analysed across the industry, services, and agriculture sectors showed that 17 sub-sectors recorded expansion in economic activities, the highest being the transportation equipment sub-sector.
On the other hand, 17 sub-sectors experienced a decline in the period under review. The steepest decline was recorded in the forestry sub-sector, while two sub-sectors remained unchanged.
Industry sector recorded expansion
Out of the 17 sub-sectors surveyed under the Industry sector PMI with an overall industry sector index of 51.3 points, 10 recorded expansions, six showed contractions, while the plastic and rubber products sub-sector remained stable.
The highest rate of expansion was seen in the transportation equipment sub-sector, while the non-metallic mineral products sub-sector experienced the highest level of contraction.
Output and employment levels in the Industry sector recorded growth at 54.0 and 52.4 points, respectively.
Conversely, both new orders and stock of raw materials declined to 49.6 points. Suppliers’ delivery time remained sluggish as it stood at 49.6 index points.
Services sector contracted
According to the report, the Services sector contracted in the period under review with a PMI of 48.6 points for January 2025.
Out of the 14 sub-sectors in the sector, only three recorded expansions, 10 saw contractions, while the management of companies sub-sectors remained stationary.
The highest expansion was seen in the motion pictures, cinema, sound recording, and music production sub-sector, while transportation and warehousing experienced the most contraction.
Business activities (output), new orders, stock of raw materials, and employment levels in the Services sector declined to 48.8, 48.6, 48.6, and 48.4 points, respectively.
Agriculture sector recorded 52.5 index points
The Agriculture Sector maintained its positive streak in the period under review, recording an overall index of 52.5 points, an indication of expansion.
Out of the five sub-sectors surveyed, four experienced growth, led by crop production, while one contracted. The forestry sub-sector recorded a decline.
Within the Agriculture sector, output, new orders, employment, and stock of raw materials recorded growth at 51.8, 54.3, 51.3, and 52.4 index points, respectively.
Yuletide demands boost Nigeria’s manufacturing sector’s performance in December 2024
Meanwhile, TheRadar earlier reported that Nigeria’s manufacturing sector ended 2024 on a high note as the Purchasing Managers’ Index (PMI) rose to 52.70 points in December, driven by a surge in demand during the yuletide season.
According to the Stanbic IBTC Bank Nigeria PMI report for December 2024, the rise is a pointer to a moderate expansion in manufacturing activities, pointing to a promising outlook for the sector in the new year.
