Purchasing Managers Index indicates economic expansion in April

The Central Bank of Nigeria’s (CBN) Purchasing Managers’ Index (PMI) report for April 2025 revealed that composite PMI stood at 52.2 index points, marking the fifth consecutive month of economic expansion, signalling sustained positive momentum in the Nigerian economy.

The industry sector (51.8 index points) recorded expansion for the fourth consecutive month, driven by increased outputs. Similarly, the services sector index, at 51.8 index points, signalled an expansion of economic activities in the month under review, which is attributable to increases in the number of incoming businesses.

Most importantly, the agriculture sector led by 53.8 index points, extending its expansion streak to nine months, with increases in new orders fuelling the identified expansion in the month under review. Composite output (53.2 points), new orders (53.2 points), and employment level (50.7 points) also recorded growth in the month under review.

This overall expansion sets a positive tone for Q2 2025. Despite these gains, the report reveals ongoing pressure on business profit margin as input costs continue to outpace output prices. To moderate input costs and ensure that economic expansion is sustained, there is a need to extend grants, tax reliefs, and other incentives to input manufacturing firms in Nigeria.