Agricultural sector drives Nigeria’s economic growth for sixth consecutive month – CBN PMI Report
By Abbas Nazil
Nigeria’s economic activity continued its upward trajectory for the sixth consecutive month in June 2025, driven primarily by strong performance in the agriculture sector, according to the latest Purchasing Managers Index (PMI) report released by the Central Bank of Nigeria (CBN) on Friday.
The composite PMI rose to 52.3 index points in June, up from 52.1 in May, indicating sustained growth across key sectors of the economy.
Agriculture maintained its lead as the top-performing sector, posting a PMI of 55.2. This marked the eleventh consecutive month of expansion in the sector, with all five of its subsectors showing growth.
The report also revealed that agriculture had the widest input-output price gap at 9.8 index points, reflecting strong supply chain activity and increased farming output across the country.
In addition to agriculture, the Industry and Services sectors also recorded positive performance. The Industry Sector, with a PMI of 51.4, continued its six-month expansion streak, as nine out of its 17 subsectors reported increased activity.
The Services Sector posted a PMI of 51.3, reflecting growth in 11 of the 14 subsectors surveyed.
The narrowest input-output price gap was recorded in the Services Sector at 4.4 index points, suggesting more stable pricing and moderate cost pressures in that area.
Overall, 25 out of 36 subsectors across all sectors experienced growth in June, pointing to a broad-based recovery in economic activity.
The positive momentum aligns with recent macroeconomic reforms introduced by the Nigerian government aimed at stabilizing the economy.
Structural adjustments, improved fiscal discipline, and a renewed commitment to monetary policy independence have contributed to improving the country’s economic fundamentals.
The International Monetary Fund (IMF), in its most recent Article IV Consultation, commended Nigeria’s leadership for implementing necessary policy reforms.
The IMF acknowledged that while the country still faces significant challenges, recent actions have bolstered economic resilience and improved macroeconomic stability.
A key reform has been the restoration of the Central Bank’s independence, particularly in curbing the excessive use of the “Ways and Means” facility—an emergency lending mechanism previously used to finance government deficits.
As of April 2025, the use of this facility had been reduced by nearly 90 percent, a move the IMF described as crucial in eliminating deficit monetization and laying the groundwork for effective inflation targeting.
The continued expansion of Nigeria’s economic activity, especially with agriculture as the growth driver, is strengthening confidence that the country may be entering a more sustainable phase of economic recovery.
The steady increase in PMI figures indicates growing investor optimism, improved business conditions, and a greater likelihood of long-term economic stability if current reforms are maintained.
