Analysis of Nigeria’s Purchasing Managers’ Index (PMI) indicates that the country’s private‑sector activity expanded steadily throughout 2025, suggesting the strongest performance in three years. The sustained expansion reflects improving business conditions and growing confidence among firms operating across services, manufacturing and trade.
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PMI trends and economic signalling
The headline PMI maintained an annual average above the 50‑point threshold — a marker of expansion — at 53.3 in 2025, up from 51.0 in 2024. This performance is the strongest since 2022 and highlights broader improvements in output, new orders and employment intentions across sectors. Analysts say that rising PMI readings are often associated with increased production, higher demand and stronger economic activity that can support investment and job creation.
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Sector contributions to growth
Manufacturing and services sectors both recorded expansion, with stabilised input costs and easing inflation pressures cited as key factors improving operating conditions. Traders and business leaders note that a less volatile foreign exchange environment in 2025 also helped reduce uncertainty in pricing and supply chain planning, benefiting smaller firms that rely on imports of raw materials.
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While challenges such as infrastructure constraints and credit access remain, the overall trend suggests increasing opportunities for MSMEs to participate more fully in Nigeria’s economic recovery. A stable growth trajectory backed by resilient output signals improved investor confidence, which could translate into broader financing flows and partnerships for small businesses.
