Nigeria’s economic activity continued to improve in July 2026, with the Central Bank of Nigeria (CBN) Purchasing Managers’ Index (PMI) rising to 51.1 points and marking a second consecutive month of expansion.
The latest CBN PMI report showed that overall business conditions strengthened during the month, although the performance was uneven across the major sectors of the economy.
Of the 32 subsectors surveyed by the apex bank, 20 recorded growth, while 12 experienced contraction.
Industry Sector Remains Under Pressure
Despite the overall improvement, the industrial sector remained in contraction territory.
The Industry PMI dropped to 49.6 points, indicating a decline in manufacturing and other industrial activities. Eight of the 16 industrial subsectors surveyed recorded expansion, while the remaining eight contracted.
The weaker industrial performance prevented the broader economy from recording stronger growth during the month.
Services Sector Returns to Growth
The services sector, however, showed signs of recovery after struggling for three consecutive months.
The Services PMI rose to 51.1 points, returning to expansion territory. Eight of the 11 services subsectors surveyed recorded growth, while three experienced declines.
The improvement in services helped offset the contraction recorded in the industrial sector.
Agriculture Maintains Strong Performance
Agriculture remained the strongest-performing sector, with its PMI holding steady at 52.1 points.
The sector has now recorded expansion for 24 consecutive months, highlighting its continued contribution to overall economic activity.
Four of the five agricultural subsectors surveyed recorded growth, although crop production remained in contraction.
Price Pressures Ease
The CBN report also pointed to a moderation in inflationary pressures during the month.
The composite input price index fell to 1.6 points, while the output price index declined to 3.1 points, suggesting that the pressure on production costs and selling prices eased during the period.
The apex bank described the latest figures as evidence of continued improvement in economic activity.
“The composite PMI inched up to 51.1 points in July 2026, signalling a second consecutive month of expansion in overall economic activity,” the CBN stated.
The bank added:
“Overall, the July 2026 PMI points to a recovery in overall economic activity, driven by sustained expansion in the Agriculture and Services sectors, which offset the contraction recorded in the Industry sector.”
The July figures therefore present a mixed picture of Nigeria’s economy, with agriculture and services supporting the recovery while the industrial sector continues to face challenges.
Source: Central Bank of Nigeria (CBN).
