Nigeria’s economic expansion remained on a steady path in March 2026, as the composite Purchasing Managers’ Index (PMI) rose to 53.2 points, signalling continued growth in business activity across the country, according to the Central Bank of Nigeria (CBN).
The latest PMI reading marks the sixteenth consecutive month of expansion in aggregate economic activity, underscoring the resilience of the economy despite persistent macroeconomic challenges, including inflationary pressures and foreign exchange volatility.
Data released by the apex bank showed that growth was broad-based, with 31 out of 36 subsectors surveyed recording expansion during the review period. This reflects improving business conditions across key segments of the economy and a gradual strengthening of Nigeria’s economic recovery.
The report, however, indicated a slight moderation in the pace of growth compared to the previous month, suggesting that while economic activity remains firmly in expansion territory, underlying constraints continue to weigh on the speed of recovery.
“PMI for March 2026 recorded a sustained expansion in economic activity across all surveyed sectors; however, the rate of growth moderated relative to the level recorded in the preceding month,” the CBN stated.
Sectoral analysis showed that the industry sector led overall performance, posting a PMI of 54.0 points. Within the sector, 14 of the 17 subsectors recorded expansion, supported by strong output growth, which stood at 55.6 points, alongside new orders at 53.1 points and employment at 52.1 points—indicating sustained increases in production and workforce engagement.
The services sector also maintained its growth trajectory, recording a PMI of 52.0 points and extending its expansion streak to fourteen consecutive months. Out of the 14 subsectors under services, 12 reported growth, reflecting continued recovery in commercial and consumer-facing activities.
Similarly, the agriculture sector sustained its positive momentum, registering a PMI of 52.8 points. The sector has now recorded expansion for twenty consecutive months, with all five subsectors surveyed posting growth, highlighting ongoing stability in food production and related activities.
Key performance indicators across the sectors—including new orders, employment levels, and inventories—remained above the 50-point threshold, reinforcing the outlook of sustained economic activity and demand conditions.
Analysts note that the consistent expansion in PMI reflects underlying resilience in Nigeria’s productive sectors, supported by gradual improvements in supply chains, business confidence, and domestic demand. However, they caution that the observed moderation in growth suggests that structural and macroeconomic challenges continue to influence overall performance.
Despite these constraints, the continued expansion across industry, services, and agriculture signals a positive trajectory for the economy, with broad-based participation across sectors providing a foundation for sustained growth in the months ahead.
The PMI, a key indicator of economic health, measures the level of business activity in both the manufacturing and non-manufacturing sectors. A reading above 50 points indicates expansion, while a figure below 50 points signals contraction.
With the index holding firmly above this threshold, the March data reinforces expectations that Nigeria’s economy will maintain its growth momentum, albeit at a measured pace, as policymakers and businesses navigate prevailing economic headwinds.
