Nigeria’s economic expansion strengthened in March 2026, with the composite Purchasing Managers’ Index (PMI) rising to 53.2 points, signalling sustained growth for the sixteenth consecutive month.
Data published by the Central Bank of Nigeria (CBN) showed continued expansion in aggregate economic activity, reflecting resilience across key sectors despite prevailing macroeconomic pressures.
Out of 36 subsectors surveyed, 31 recorded growth, underscoring broad-based improvements in business conditions and a steady recovery trajectory across the economy. However, the pace of expansion moderated slightly compared to the previous month.
The CBN noted that while all major sectors—industry, services, and agriculture—remained in expansion territory, the rate of growth slowed.
“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 apex bank stated.
Sectoral breakdown
The industry sector led the expansion with a PMI of 54.0 points, as 14 of 17 subsectors recorded growth. Output stood at 55.6, new orders at 53.1, and employment at 52.1.
The services sector posted a PMI of 52.0 points, marking its fourteenth consecutive month of expansion, with 12 of 14 subsectors improving.
Agriculture recorded a PMI of 52.8 points, extending its growth streak to 20 consecutive months, with all five subsectors in expansion.
Across sectors, key indicators—including new orders, employment, and inventories—remained above the 50-point threshold, signalling continued increases in demand, production, and operational activity.
Outlook and challenges
Despite the sustained growth, the moderation in pace points to lingering macroeconomic constraints. PMI had climbed to 56.4 points in February 2026, marking 15 straight months of expansion, indicating a slight easing in momentum in March.
Inflationary pressures, exchange rate volatility, and high borrowing costs continue to weigh on business performance.
While the data confirms that economic activity remains firmly in expansion territory, sustaining this trajectory will depend on improved macroeconomic stability, enhanced foreign exchange liquidity, and stronger investor confidence.
The CBN reiterated that a PMI reading above 50.0 points indicates expansion, while a reading below that threshold signals contraction.
