Nigeria’s domestic economic activity has registered its strongest performance in approximately five years, according to the latest Purchasing Managers’ Index released by the Central Bank of Nigeria, providing fresh evidence that Africa’s largest economy is gaining substantial traction after years of challenging conditions.
The Composite PMI for December 2025 stood at 57.6 index points, maintaining its position firmly above the critical 50-point threshold that separates economic expansion from contraction. The figure represents a significant milestone for policymakers who have implemented a series of macroeconomic reforms aimed at stabilizing the economy and restoring investor confidence.
In a statement issued by Hakama Sidi Ali, the Acting Director of Corporate Communications at the apex bank, the CBN emphasized that the sustained improvement reflects continued expansion across major employment-generating sectors, suggesting that the growth is not only robust but also inclusive.
The December survey revealed encouraging performance across Nigeria’s three principal economic sectors. Agriculture, which remains the backbone of the economy and the largest employer of labor, posted a strong reading of 58.5 points, indicating vigorous activity in crop production, livestock, and related agribusiness operations.
The industrial sector, encompassing manufacturing, construction, and utilities, recorded 57.0 points, reflecting increased factory output and production capacity utilization. Meanwhile, the services sector—covering everything from telecommunications and financial services to hospitality and retail trade—registered 51.9 points, maintaining positive momentum despite facing steeper challenges than its counterparts.
Perhaps most significantly, the survey showed that 32 of the 36 subsectors monitored experienced expansion in critical business indicators, including production levels, new business orders, and employment generation. This widespread improvement across such a diverse range of economic activities suggests the recovery is not concentrated in a few areas but is broadly distributed throughout the economy.
The CBN highlighted that the positive performance was particularly pronounced within the non-oil economy, a development that economists view as strategically important for Nigeria’s long-term economic diversification goals. For years, policymakers have sought to reduce the country’s dependence on petroleum revenues, which have historically left the economy vulnerable to global oil price shocks.
The rebound in domestic demand—evidenced by increased new orders and business activity—points to improving consumer confidence and purchasing power, factors that had been severely constrained during previous periods of currency instability and high inflation.
Central bank officials attributed the improved PMI performance to ongoing macroeconomic stabilization measures that have been implemented over recent months. These reforms, which include efforts to enhance the business operating environment, stabilize the foreign exchange market, and support credit access, appear to be yielding tangible results.
“The positive effects of our stabilization measures are becoming increasingly evident,” the CBN statement noted, adding that the reforms have helped bolster job creation, improve production efficiency, and strengthen overall business optimism heading into the final quarter of 2025.
Business confidence indicators within the survey showed that companies remain optimistic about economic prospects, with many reporting plans to expand operations and increase hiring in response to improved market conditions.
The December reading has reinforced expectations among economists and policymakers of a stable growth trajectory as Nigeria enters the new year. However, analysts caution that sustaining this momentum will require continued policy consistency, infrastructure development, and measures to address persistent challenges such as security concerns in some regions and energy supply constraints.
The PMI data will likely provide ammunition for the CBN’s Monetary Policy Committee as it weighs future policy decisions, potentially offering room to calibrate interest rates in support of growth while remaining vigilant about inflationary pressures.
For millions of Nigerians who have endured economic hardship in recent years, the PMI figures offer a glimmer of hope that improved macroeconomic conditions may eventually translate into better job opportunities, increased wages, and improved living standards.
The Central Bank is expected to release the January 2026 PMI report next month, which will provide crucial insights into whether the strong December performance can be sustained into the new year.
WHAT YOU SHOULD KNOW
Nigeria’s economy has hit its strongest growth level in five years, with the December 2025 PMI reaching 57.6 points—well above the expansion threshold. What matters most is that this growth is broad-based: 32 of 36 subsectors are expanding, agriculture and industry are performing strongly, and critically, the non-oil economy is driving the recovery.
This suggests Nigeria is finally making progress on economic diversification and creating jobs across multiple sectors. The Central Bank’s reforms appear to be working, and if this momentum holds, ordinary Nigerians should begin seeing improvements in employment opportunities and business conditions in 2026.
