Economic activity expansion halts in April as PMI dips to 49. 4 points

Economic activity in Nigeria slowed in April 2026, as the Purchasing Managers’ Index (PMI) fell to 49. 4 points, dropping below the 50-point threshold that separates expansion from contraction. The Central Bank of this in its latest PMI report, noting that the April figure marked the first contraction after 16 consecutive months of sustained growth. From the report, “The composite PMI for April 2026 stood at 49. 4 points, slightly below the 50-point threshold, signalling a contraction in overall economic activity. April 2026 recorded the first contraction after 16 consecutive months of sustained expansion. ” The downturn was driven largely by declines in the services and industrial sectors. The services sector recorded the sharpest contraction, with a PMI of 48.

8 points, as 10 out of 14 subsectors reported reduced business activity, reflecting a more challenging environment for consumer-facing businesses.

Similarly, the industrial sector posted a PMI of 49. 5 points, indicating mild contraction. Eight out of 17 industrial subsectors recorded declines, while others showed limited growth.

In contrast, the agriculture sector remained relatively resilient, recording a PMI of 50. 2 points. The sector extended its expansion streak to 21 consecutive months, with three of the five surveyed agricultural subsectors reporting growth, helping to cushion the broader economic slowdown.

The report also highlighted rising cost pressures, noting that increases in input costs were matched by rises in output prices. This suggests that businesses are passing higher production costs directly to consumers in a bid to protect shrinking profit margins.

Overall, 19 of the 36 subsectors surveyed recorded contractions, signalling a cautious start to the second quarter of the year.

A further breakdown showed that 16 subsectors expanded during the period, with forestry recording the strongest growth. also, primary metals posted the steepest decline, while one subsector remained unchanged.