Nigeria's economic recovery is showing promising signs as the Purchasing Managers Index (PMI) for September 2026 rose to 53.0 points, marking an increase from 52.7 points in August. This uptick, reported by the Central Bank of Nigeria (CBN), indicates a sustained expansion in economic activity for the fourth consecutive month, driven primarily by a rebound in industrial operations and resilience in key economic sectors.

The PMI serves as a crucial monthly indicator of the health of the manufacturing and services sectors. The CBN's report highlighted that out of 32 economic subsectors surveyed, 23 experienced growth in business activities, while only nine reported declines. This broad-based expansion reflects growing confidence among private sector players.

A significant contributor to the September growth was the industrial sector, which saw its PMI rise sharply to 52.0 points, up from 50.6 points in August. This marks the second consecutive month of expansion in this sector, with 10 out of 16 industrial subsectors showing positive growth.

While the services sector experienced a slight decline in its PMI, it remained a stabilizing force in the economy. The Services PMI recorded 53.2 points, down marginally from 53.3 points in the previous month, yet still indicating expansion for the third month in a row. Notably, nine out of 11 subsectors within services reported growth, underscoring the sector's vital role in the overall economic landscape.

The agricultural sector also demonstrated resilience, with its PMI standing at 53.1 points, slightly down from 53.4 points in August. This sector has now marked twenty-six consecutive months of expansion, driven by growth in four out of five subsectors.

Despite the positive headline figures, the CBN cautioned about emerging challenges related to corporate profitability. The report indicated that the Composite PMI input price index rose by 0.8 points, while the output price index fell by 0.5 points. This trend suggests that businesses are facing increased costs for raw materials and logistics, compelling them to reduce final selling prices to maintain consumer demand.

The CBN concluded that the September PMI reflects a strengthening recovery in economic activity, bolstered by ongoing growth in the services and agriculture sectors, alongside improved performance in industry. As Nigeria navigates these economic shifts, the focus will be on sustaining this momentum and addressing the challenges that could impact future growth.