June 26, 2025/CSL Research
The Central Bank of Nigeria (CBN) has released the Purchasing Managers’ Index (PMI) report for May 2025, covering the Industry, Services, and Agriculture sectors. The composite PMI stood at 52.1 points, marking the sixth consecutive month of economic expansion and indicating sustained positive momentum in the Nigerian economy. A PMI reading above 50.0 signals growth in business activity, while a reading below 50.0 indicates contraction. All three sectors demonstrated resilience in May.
Agriculture recorded a PMI of 53.4, extending its growth streak to ten consecutive months. The industry sector recorded a PMI of 51.6 points—its sixth straight month of expansion, while the Services sector also grew, with a PMI of 51.7 points, marking its fourth consecutive month of improvement.
In May 2025, new orders and composite output recorded the strongest growth among key PMI indicators, with readings of 52.7 and 52.5 points respectively—slightly down from 53.2 points in April. These figures reflect continued solid demand and production activity during the review period. Suppliers’ delivery time and employment level also improved, rising to 52.3 and 51.1 points respectively, from 51.0 and 50.7 points in the previous month. These gains suggest more efficient supply chains and a resilient labour market. Meanwhile, expansion in raw material inventories moderated to 51.4 points in May, down from 51.7 in April. This likely reflects a gradual drawdown of inventory stockpiles built up by manufacturers in February 2025, when the PMI peaked at 52.0 points for the year.
In May 2025, output levels and new orders remained in the expansion zone across all sectors, supported by easing inflationary pressures that have bolstered domestic demand. The headline inflation rate declined to 22.97% year-on-year, down from 23.71% in April, contributing to more favourable economic conditions. However, average input prices across all surveyed sectors continued to rise faster than average output prices, signalling sustained pressure on business profit margins. Looking ahead, overall production and composite output are expected to remain in expansion territory, driven by further expected moderation in inflation, which should help lower input costs. Nevertheless, upside risks to inflation persist.
Click here to download full report: CSL Nigeria Daily – 26 June 2025 – PMI.pdf
