Nigeria’s industrial sector slips into contraction in August — CBN

Nigeria’s industrial sector recorded a slowdown in August 2025, slipping into contraction after months of marginal growth, according to the Central Bank of Nigeria’s latest Purchasing Managers’ Index (PMI).

The CBN report showed the industry sector index fell to 49.1 points in August, down from 51.1 points in July. Any reading below 50 indicates contraction.

Key indicators — including output (49.6 points), new orders (47.2 points), and employment (48.9 points) — all registered declines, while the stock of raw materials also contracted at 48.9 points.

However, the survey noted some relief in supply chains, with the Suppliers’ Delivery Time index improving to 52.4 points, reflecting faster delivery times during the month.

Out of the 17 subsectors assessed, seven expanded while ten contracted. Transportation equipment recorded the highest growth, while paper products suffered the sharpest contraction.

While the industrial sector struggled, the services and agriculture sectors continued to grow, though at varying rates. The services sector slowed slightly to 51.9 points, compared with 52.8 in July, while agriculture held steady at 53.9 points, maintaining its position as a key driver of Nigeria’s non-oil economy.

The August PMI paints a mixed picture for Nigeria’s economy, highlighting ongoing headwinds in manufacturing and industry despite resilience in agriculture and services.