Nigeria’s private-sector recovery gathered momentum in August 2026 as the Composite Purchasing Managers’ Index (PMI) rose to 52.7 points from 51.1 points in July.
According to the latest survey released by the Central Bank of Nigeria (CBN), the reading marks the third consecutive month of overall business expansion and the highest headline level recorded since March.
The rebound was broad-based at the macro level, with all three core segments; Services, Agriculture, and Industry registering above the 50.0 neutral threshold simultaneously for the first time this year.
Services accelerated to 53.3 points from 51.1 points in July, driven by strong activity across nine of its 11 subsectors, notably administrative support, education, and financial services.
Agriculture sustained its multi-year expansion, climbing to 53.4 points and extending its unbroken growth run to 25 straight months, anchored by robust farming output and forestry.
Industry rebounded into expansion territory at 50.6 points, snapping a four-month contraction that began in April. The industrial recovery was propelled by an output turnaround to 51.4 points and improved suppliers’ delivery times at 53.3 points, with oil refining staging a dramatic surge to 66.5 points alongside gains in basic metals and electronics.
However, the underlying quality of the expansion remains fragile and heavily domestically driven.
The industrial turnaround rests on a narrow foundation, with 11 of the 16 manufacturing subsectors remaining in contraction, led by deep slumps in motor vehicle assembly, non-metallic minerals, and utility supplies.
Across the wider economy, total output growth outpaced new incoming orders, inventories of raw materials remained constrained, and order backlogs shrank to 44.8 points, reflecting thinning pipelines rather than sustained consumer demand.
Market analysts note that while the headline expansion offers a cautiously optimistic backdrop supported by relative exchange-rate stability, chronic bottlenecks in power supply and high operational costs will continue to cap corporate margin growth until broader consumer purchasing power and export demand firmly recover.