Nigeria’s economic activities expanded for the 14th consecutive month in January 2026, buoyed largely by sustained growth in the industrial sector, as the composite Purchasing Managers’ Index (PMI) settled firmly in expansion territory at 55.7 points, according to surveyed report published by the Central Bank of Nigeria (CBN).
Although the January PMI reading signalled continued expansion, it represented a moderation of 1.9 percent from the 57.6 points recorded in December 2025. Despite the slowdown, the index remained well above the 50-point threshold, reinforcing indications of improving business conditions across the economy.
Out of the 36 subsectors covered in the composite PMI survey, 31 recorded expansion in economic activities during the month, underscoring the broad-based nature of growth across key segments of the economy.
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The industry sector remained the primary driver of the expansion, with the Industry PMI standing at 56.0 points in January 2026, reflecting a strong and sustained expansionary trajectory. Further breakdown of the data showed that 14 of the 17 industrial subsectors surveyed posted growth, highlighting robust and widespread improvements in industrial activity.
Within the sector, key sub-indices pointed to stronger momentum. The Output (Production) index rose to 57.2 points, while New Orders came in at 55.0 points, indicating rising demand and improved production levels. The Employment index, at 52.8 points, also remained in expansion territory, reflecting increased labour engagement across industrial subsectors.
Similarly, the Raw Materials Inventory index expanded to 55.5 points, suggesting improved availability of inputs, while the Suppliers’ Delivery Time index climbed sharply to 60.4 points, pointing to enhanced efficiency and faster supply-chain performance.
Out of the 17 industry subsectors surveyed, only three recorded contractions, which the CBN described as marginal and insufficient to offset the sector’s overall positive performance. Non-metallic Mineral Products recorded the strongest expansion during the period, while Transportation Equipment posted the most pronounced, though limited, contraction.
The services sector also sustained its growth momentum, with the Services PMI closing at 54.5 points in January 2026. This marked the 12fth consecutive month of expansion, supported by increased business activity and demand across service-oriented industries. Twelve of the 14 subsectors surveyed recorded growth, while two experienced contraction, further reflecting the largely broad-based performance of the sector.
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Agricultural activities remained resilient, as the Agriculture PMI recorded 54.2 points in January, marking the 18th consecutive month of expansion. All five subsectors surveyed recorded growth, underscoring steady improvements in farming and allied activities during the review period.
Meanwhile, input and output price indices moderated in January 2026, with output prices declining more significantly for the composite, services, and agriculture indices, suggesting easing price pressures across parts of the economy.
Overall, the sustained expansion across industry, services, and agriculture highlights a resilient and broadly improving economy, with the industrial sector continuing to play a central role in driving growth momentum into the first quarter of 2026.
Hope Moses-Ashike
Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks.
She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings.
Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.
