Nigeria’s private sector maintained its growth momentum in October 2026, recording its fifth consecutive month of expansion as business activity improved across major sectors of the economy.
The country’s Purchasing Managers’ Index (PMI) increased to 53.2 points in October from 53.0 points recorded in September, indicating continued expansion in economic activities.
The latest figures were reported by Nairametrics on November 4, based on data released by the Central Bank of Nigeria (CBN).
A PMI reading above 50 points indicates expansion, while a reading below 50 points represents contraction. A reading of exactly 50 points suggests that business conditions have remained unchanged.
The October performance suggests that businesses continued to experience improvements in production, employment and other operating activities, although some indicators showed signs of moderation.
The agriculture and industrial sectors were major contributors to the expansion, while the services sector recorded slower growth compared with the previous month.
According to the reported figures, the composite output index increased to 54.6 points in October from 53.9 points in September.
The improvement indicates stronger output activities across the sectors covered by the survey.
The employment index also increased significantly, rising to 53.2 points from 51.5 points in the preceding month.
This suggests that more businesses reported improvements in employment conditions during the review period.
However, the new orders index declined to 52.8 points from 53.7 points in September, showing that demand conditions moderated slightly.
The stock of raw materials index also eased to 51.9 points from 52.1 points.
Although these indicators declined, they remained above the 50-point benchmark, meaning that they were still within expansion territory.
The industrial sector recorded another improvement during the month.
Its PMI rose to 52.6 points from 52.0 points in September, representing the third consecutive month of expansion.
The improvement was supported by stronger production, new orders, employment and inventory activities.
Twelve of the 16 industrial subsectors surveyed recorded expansion, while four experienced contraction.
Cement manufacturing emerged as the strongest-performing industrial subsector, recording a PMI reading of 60.2 points.
This performance highlights the importance of construction-related activities to industrial growth.
However, chemical and pharmaceutical products recorded a weaker performance, with a PMI reading of 43.4 points, indicating contraction.
Agriculture remained the strongest-performing major sector in October.
The sector’s PMI increased to 54.7 points from 53.1 points in September, extending its expansion to 27 consecutive months.
All five agriculture subsectors recorded growth during the period.
General farming activities increased to 56.8 points from 54.6 points, while the new orders index rose to 55.6 points from 54.4 points.
The livestock subsector recorded the strongest performance among the agriculture subsectors, with a PMI of 56.4 points.
The services sector also remained in expansion, although its growth moderated.
Its PMI declined to 52.7 points from 53.2 points in September.
Seven of the 11 services subsectors recorded expansion, while four contracted.
Educational services recorded a particularly strong performance, with a PMI reading of 60.2 points.
Despite the positive overall performance, rising business costs remain a concern.
The composite input price index increased to 64.0 points from 63.3 points in September, while the output price index rose to 58.9 points from 58.4 points.
Higher input prices can increase operating expenses for businesses, particularly manufacturers and agricultural producers that depend on raw materials, transportation and energy.
For small businesses, increased production costs can reduce profit margins or force operators to adjust the prices of their products.
The October PMI results therefore present a mixed picture of Nigeria’s private sector.
On one hand, continued expansion suggests that businesses are experiencing improvements in economic activity and employment. On the other hand, rising input prices and slower new orders show that challenges remain.
The survey covered purchasing and supply executives across the industry, services and agriculture sectors.
For policymakers, the figures provide useful information about the direction of economic activity and the conditions facing businesses.
Sustaining this growth will require policies that improve access to financing, support infrastructure development, reduce production costs and strengthen the business environment.
Ultimately, the fifth consecutive month of expansion is an encouraging development for Nigeria’s economy, but maintaining the momentum will depend on whether businesses can continue increasing output while managing rising operating expenses.
