Samuel Omang
Nigeria’s industrial sector slipped back into contraction in August, even as the broader economy continued to expand for the ninth consecutive month, according to the Central Bank of Nigeria’s latest Purchasing Managers’ Index (PMI) report.
The report released Thursday showed that industrial activities declined to 49.1 index points, dragged down by contractions in 10 out of 17 subsectors surveyed, including paper products which suffered the sharpest slump. Only seven subsectors managed to record growth, with transportation equipment leading the rebound.
Key industrial indicators also weakened: Output fell to 49.6 points, new orders to 47.2, and employment to 48.9, reflecting reduced production, weak demand, and slower job creation. Stocks of raw materials also contracted to 48.9 points.
The only bright spot for the sector was supplier delivery time, which improved to 52.4 index points, suggesting faster distribution of inputs.
Meanwhile, the rest of the economy maintained strong momentum. The service sector expanded to 51.9 points, marking its seventh straight month of growth, with 10 of 14 subsectors showing increased activity. Agriculture also surged ahead with 53.9 points, its 13th consecutive month of expansion, as all five subsectors recorded solid growth.
This resilience lifted the overall composite PMI to 51.7 points, underscoring continued expansion in national economic activity despite the industrial slump. Out of 36 subsectors across the economy, 22 recorded growth during the month.
The CBN noted that industry also posted the widest input–output price gap at 7.4 points, highlighting rising production costs and squeezed profit margins. Services, by contrast, recorded the lowest gap at 3.7 points.
“The August 2025 PMI data indicated a continued expansion in economic activities across Nigeria. The expansion in services and agriculture underpins a favourable outlook for Q3’25,” the apex bank stated.
The latest figures signal a mixed economic picture: while Nigeria’s broader economy shows resilience, its industrial base faces fresh headwinds that could weigh on jobs, investment, and long-term growth.