By Anita Dennis
Business activity in Nigeria continued to strengthen in February 2026 as the composite purchasing managers’ index (PMI) rose to 56.4 points, marking the fifteenth consecutive month of expansion across major sectors of the economy.
The latest survey released by the Central Bank of Nigeria shows sustained growth across industry, services and agriculture, indicating that business conditions remained favourable during the month.
The purchasing managers’ index, commonly referred to as PMI, is a key indicator used to measure the direction of economic activity. Readings above the 50-point threshold signal expansion, while values below 50 indicate contraction in business conditions.
According to the report, 30 of the 36 subsectors surveyed recorded expansion, suggesting that growth was broad based across the economy.
The central bank said the data provides “strong evidence of a robust and sustainable growth momentum, underpinning a positive economic outlook in the first quarter of 2026.”
Production, Orders And Employment Improve
Core components of the index all recorded expansion during the review period.
Output rose to 57.6 points, reflecting stronger production levels among firms. New orders increased to 56.8 points, indicating rising demand for goods and services across the economy.
Employment also expanded, with the labour index reaching 54.2 points, suggesting that businesses increased hiring in response to higher operational activity.
Supply chain conditions also improved. The stock of raw materials index rose to 54.6 points, while suppliers’ delivery time stood at 58 points, signalling faster delivery and improved supplier responsiveness.
Together, these indicators point to stronger operational capacity among businesses and improved coordination across production networks.
Industrial Sector Maintains Strong Expansion
Nigeria’s industrial sector recorded a PMI of 56.8 points in February, maintaining the expansionary trend seen in previous months.
Within the sector, output reached 59.6 points while new orders and employment stood at 56.3 points and 54.4 points respectively. These figures reflect increased production activity and stronger workforce engagement across manufacturing and industrial firms.
Out of the 17 subsectors surveyed in the industrial segment, 13 reported growths. Four subsectors recorded contractions, although the declines were described as marginal and insufficient to reverse the overall expansion.
Services Sector Continues Growth Path
The services sector also sustained its upward trajectory, recording a PMI reading of 55.3 points. This represents the thirteenth consecutive month of expansion in service-based activities.
The survey showed that 13 out of 14 subsectors within the services segment recorded growth during the period.
The only subsector that contracted was professional, scientific and technical services, while educational services recorded the strongest expansion among service providers.
Growth in this segment was largely attributed to increased incoming business and stronger operational activity among firms.
Agriculture Extends Longest Growth Streak
The agriculture sector continued to post the longest expansion streak among the three major sectors. Its PMI reading reached 56.5 points in February, representing the nineteenth consecutive month of growth.
Four of the five agricultural subsectors surveyed recorded expansion. Crop production led the growth trend, while forestry was the only subsector that recorded contraction during the period.
The report said the agricultural sector’s continued expansion reflects steady improvements in farming activity and supply conditions.
Rising Costs Remain A Watch Point
Despite the positive momentum, the survey also pointed to a slight increase in production costs.
Input price indices for the composite index and the three major sectors rose during the month and remained higher than output price indices. This suggests that firms are experiencing higher production costs, which could place pressure on profit margins if sustained.
Nevertheless, the report emphasised that the overall economic picture remains positive.
“In February 2026, the PMI data showed a broad-based improvement in economic activity across all sectors relative to the previous month,” the report said.
The survey covered 1,900 purchasing and supply executives across industry, services and agriculture and was conducted between February 9 and 13.
Overall, the results suggest that Nigeria’s economy entered 2026 with sustained momentum, supported by rising production activity, expanding demand and improving supply chain conditions.
