Story perspectives

Nigeria's PMI Hits 54.2, Signals Economic Growth Ahead

9/3/2025

Summary

Story summary

Nigeria's private sector growth continued in August, with the Purchasing Managers' Index (PMI) rising to 54.2, marking nine months of improvement.
Increased customer demand and easing inflation led to higher output and new orders, especially in services, construction, and agriculture.
Job creation persisted for the third month, though at a slower rate, with input costs rising at the lowest rate since March 2023.
Analysts forecast GDP growth of 3.5% in 2025, driven by better foreign exchange liquidity and structural reforms.

History

Historical Context

Nigeria's economy, historically impacted by military rule and corruption, faced a recession in 2017, contracting by 1.6% due to falling oil prices. However, structural reforms and improved foreign exchange policies have led to a recovery, with a 54.2 PMI in August 2023 and a projected 3.5% GDP growth in 2025, highlighting the resilience of sectors like services and agriculture.

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Story summary

Nigeria's private sector growth continued in August, with the Purchasing Managers' Index (PMI) rising to 54.2, marking nine months of improvement.
Increased customer demand and easing inflation led to higher output and new orders, especially in services, construction, and agriculture.
Job creation persisted for the third month, though at a slower rate, with input costs rising at the lowest rate since March 2023.
Analysts forecast GDP growth of 3.5% in 2025, driven by better foreign exchange liquidity and structural reforms.

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