Nigeria’s industrial sector contracted in August 2025, even as overall economic activity continued to grow, according to the Central Bank of Nigeria’s (CBN) latest Purchasing Managers’ Index (PMI) report.
The Industry Sector index fell to 49.1 points, signaling a decline after contractions in 10 of 17 surveyed subsectors. Output (49.6), new orders (47.2), and employment (48.9) all posted declines, while the stock of raw materials also contracted at 48.9 points. Transportation equipment recorded the highest expansion among subsectors, while paper products experienced the sharpest contraction.
Supplier delivery times improved, however, with the index rising to 52.4 points.
Despite the industrial slowdown, the broader economy expanded for the ninth straight month. The composite PMI stood at 51.7 points, supported by growth in both services and agriculture.
The services sector recorded 51.9 points, marking its seventh consecutive month of expansion, with 10 of 14 subsectors growing. Agriculture performed even stronger, rising to 53.9 points for its 13th consecutive month of growth, with all five subsectors expanding.
The report noted that industry recorded the widest gap between input and output prices at 7.4 points, compared with 3.7 points in services.
According to the CBN, the sustained growth in services and agriculture suggests a favorable outlook for the third quarter of 2025, despite continued pressure in the industrial sector.