PMI falls below 50 as Nigeria records first contraction in 16 months – Report

By Abubakar Yunusa

Nigeria’s economic activity slipped into contraction in April 2026 as the Purchasing Managers’ Index (PMI) fell to 49.4, marking the first decline after 16 consecutive months of expansion.
This is according to the latest report released by the Central Bank of Nigeria (CBN) on Wednesday.
The figure, which dropped below the 50-point threshold that separates expansion from contraction, reflects a broad-based slowdown across key sectors, particularly industry and services, even as agriculture remained resilient.
The report read, “The composite Purchasing Index (PMI) for April 2026 stood at 49.4 points, marginally below the 50-point threshold, indicating a slight contraction in aggregate economic activity following sixteen (16) consecutive months of expansion.”
A breakdown of the composite index shows that the contraction was largely driven by weakening demand conditions and slowing business activity.
Output fell to 49.7, new orders declined more sharply to 48.4, while employment dropped to 49.6, all indicating reduced momentum across the economy.
Inventory levels also weakened, with the stock of raw materials index at 48.7, pointing to reduced purchasing activity by firms. However, supplier delivery time stood at 50.9, suggesting slightly improved supply chain efficiency despite the broader slowdown.
Out of the 36 subsectors surveyed, 19 recorded contraction, one remained unchanged, and only 16 posted expansion, primary metals recorded the steepest decline, while forestry emerged as the fastest-growing subsector during the month.
The report also linked the moderation in business conditions to external pressures, including heightened geopolitical tensions, particularly in the Middle East, which may have disrupted supply chains and business confidence.