Fresh data from the Central Bank of Nigeria, CBN, shows that business activities in the country slowed in January 2026. This is according to the apex bank’s latest Purchasing Managers’ Index, PMI.
The CBN report says Nigeria’s private sector started the year on a weaker note, as the PMI, fell below the expansion level, raising concerns about demand, rising costs, and business confidence.
The CBN says its Purchasing Managers’ Index for January 2026 dropped to 49.7 points, down from 53.5 points recorded in December 2025. PMI reading below 50 indicates a contraction in business activity.
The apex bank also notes that this is the first time since the PMI survey began in 2014 that the January reading has fallen below the expansion threshold, ending more than one year of steady growth.
According to the CBN report, new business orders were flat, as firms recorded weaker demand at the start of the year.
The bank adds that purchasing activities slowed, while inventory levels rose at a slower pace, showing that many businesses were cautious about spending due to economic pressures.
On sectoral performance, the index reveals that the outcome was mixed. While agriculture, manufacturing, and services recorded modest expansion, activity in the wholesale and retail trade sector declined, dragging down the overall PMI reading.
Despite the slowdown, the CBN reports that employment levels increased slightly, suggesting that businesses are still retaining workers, although job growth remained weak. However, the report shows that cost pressures intensified, with input prices rising to a three-month high.
The bank also says staff costs increased at the fastest rate since mid-2025, while selling prices climbed to a four-month high, pointing to continued inflationary pressure in the private sector.
Although businesses remain cautiously optimistic about future output, the CBN says the January PMI shows that economic momentum weakened at the start of 2026.
Analysts say the data highlights the need for policies that support production, improve consumer demand, and help ease rising costs across key sectors of the economy.
(Editor: Terverr Tyav)
