Nigeria’s PMI Slips Into Contraction After 16-Month Expansion Streak

April 30, (THEWILL) — Nigeria’s economic momentum slowed in April 2026 as the Purchasing Managers’ Index (PMI) fell to 49.4, signalling the first contraction after 16 consecutive months of growth, according to the Central Bank of Nigeria (CBN). The drop below the 50-point benchmark used to distinguish expansion from contraction reflects a modest but broad-based […]

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April 30, (THEWILL) — Nigeria’s economic momentum slowed in April 2026 as the Purchasing Managers’ Index (PMI) fell to 49.4, signalling the first contraction after 16 consecutive months of growth, according to the Central Bank of Nigeria (CBN).

The drop below the 50-point benchmark used to distinguish expansion from contraction reflects a modest but broad-based slowdown across key sectors, especially industry and services, while agriculture showed relative resilience.

“The composite PMI for April 2026 stood at 49.4 points… indicating a slight contraction in aggregate economic activity,” the report stated.

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Underlying data points to weakening demand as a major driver.

Output edged down to 49.7, new orders declined more sharply to 48.4, and employment slipped to 49.6, highlighting reduced business activity.

Inventory levels also fell, with raw material stocks at 48.7, suggesting firms scaled back purchasing.

However, supplier delivery time rose slightly to 50.9, indicating marginal improvements in supply chain efficiency.

Of the 36 subsectors surveyed, 19 contracted, one remained unchanged, and 16 expanded. Primary metals recorded the steepest decline, while forestry led growth.

Sectoral analysis shows industry PMI at 49.5 and services at 48.8, both indicating contraction amid weaker demand and cautious hiring.

In contrast, agriculture sustained growth with a PMI of 50.2, extending its expansion streak to 21 months despite emerging pressures.

The report also highlighted rising cost pressures, with input and output prices increasing by 3.2 points, as businesses passed higher production costs on to consumers.

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