Nigeria’s business activity recorded a stronger improvement in December 2025, with the headline Purchasing Managers’ Index (PMI) rising to 57.6 points, signalling a faster pace of expansion as output and new orders continued to grow.

This is according to the latest PMI report released by the Central Bank of Nigeria yesterday. The CBN said the December reading was the strongest expansion signal recorded in 2025, with 32 out of the 36 subsectors covered in the survey reporting growth during the month.

The report showed that business activity expanded for the 13th consecutive month, rising to 57.6 points in December from 56.4 points in November, supported by sustained growth in output and new orders across key sectors of the economy.

Firms surveyed reported improved demand conditions during the month, which helped to drive higher levels of production and sales. New orders increased at a faster rate in December, reflecting stronger customer demand and improved market conditions. The growth in new business was accompanied by a further rise in output, as companies responded by stepping up production to meet demand. The pace of output expansion was described in the report as solid, extending the positive trend recorded in recent months.

Employment conditions also remained positive, with firms continuing to expand their workforce, although at a modest pace. The report noted that job creation was supported by higher workloads and the need to sustain output growth, even as some firms remained cautious about longer-term cost pressures.

The report further showed that the expansion in business activity cut across all major sectors of the economy during the month. Industrial activity recorded a strong improvement, with the sector posting its highest expansionary reading since March 2020, as 14 of the 17 industrial subsectors surveyed reported growth.

The services sector also maintained its expansion momentum, with business activity increasing across 13 of the 14 subsectors, extending growth in the sector to the eleventh consecutive month.

“In December 2025, the industry sector PMI stood at 57.0 index points, reflecting the highest expansionary trajectory since March 2020. Further analysis showed that 14 of the 17 subsectors surveyed recorded growth in industrial activity, indicating a strong and widespread expansion in aggregate economic activity,” the report said.

Agriculture emerged as the strongest performing sector, with its PMI rising to 58.5 points, extending the expansion trend to the seventeenth consecutive month, driven by general farming activities across all five agricultural subsectors.

Input costs continued to rise in December, reflecting higher prices for raw materials, transportation and energy, but the rate of increase showed signs of easing compared with earlier months. This moderation in cost pressures contributed to a slower pace of increase in output prices, as firms sought to remain competitive while passing some costs on to customers.

On business sentiment, respondents expressed optimism about the outlook for activity in the months ahead, citing expectations of improved demand and a more stable operating environment. However, some firms also highlighted concerns around exchange rate pressures and operating costs as factors that could weigh on future performance.

The CBN noted in the report that the PMI reading above the 50-point threshold indicates expansion in business activity, with the December figure representing the strongest improvement recorded during the year. It added that the sustained expansion reflected improving momentum in the private sector, despite lingering macroeconomic challenges.