Nigeria’s October PMI rises to 53.2 as agriculture leads expansion

Nigeria’s composite Purchasing Managers’ Index increased to 53.2 in October from 53.0 in September, according to the Central Bank of Nigeria’s monthly report. It was the fifth consecutive month of expansion. Twenty-four of the 32 subsectors surveyed expanded, while eight contracted.

The agriculture index reached 54.7, industry rose to 52.6 and services eased to 52.7. Each remained above the 50-point threshold separating expansion from contraction. These are survey index readings, not percentage changes in national output.

The sector picture remains uneven

The CBN reported expansion in all five agricultural subsectors, twelve of sixteen industrial subsectors and seven of eleven service subsectors. Its composite input-price index increased by 0.7 points and its output-price index by 0.5 points.

Nairametrics’ account of the report also noted that new orders eased to 52.8 from 53.7. Export and import order indices improved but remained below 50, indicating that the headline expansion did not extend to every component.

B&A perspective: connect the survey to the business

For companies seeking finance, the survey is useful background for assessing demand and costs. A sponsor’s own order book, cash collections and margins remain the evidence needed to understand its funding requirement. Broad expansion alone cannot establish that a particular expansion project can service debt.