Nigeria's economic recovery accelerated significantly in the final month of 2025, driven by broad-based growth across most sectors, the Central Bank of Nigeria (CBN) has reported.
Broad-Based Expansion Signals Strong Momentum
The CBN's latest Purchasing Managers' Index (PMI) data reveals a strengthening recovery. In December 2025, 32 out of the 36 economic subsectors monitored recorded growth, painting a picture of widespread economic activity. This performance provided a positive conclusion to the year's economic trajectory.
The composite PMI, a key gauge of economic health, rose to 57.6 index points in December from 56.4 in November. Any reading above 50 indicates expansion, and this marked the 13th consecutive month of growth, representing the strongest aggregate performance for the entire year of 2025.
The apex bank attributed this sustained expansion to stronger output levels, a rise in new orders, and steady demand across the industrial, services, and agricultural sectors. This reinforced optimism about economic conditions as the year drew to a close.
Transportation Equipment Leads as Top Performer
A detailed breakdown of the data highlights the transportation equipment subsector as the star performer, emerging as the fastest-growing area in December. The expansion was so pervasive that only three subsectors recorded contractions, with paper products posting the most significant decline. Activity in professional, scientific, and technical services remained unchanged.
The CBN noted that the contractionary impact from the few lagging areas was minimal and insufficient to dampen the overall positive momentum from the widespread growth.
Industry and Services Sectors Show Sustained Growth
The industry sector PMI stood at 57.0 points, indicating sustained expansion believed to be supported by increased production during the festive season. Key indices for output, new orders, and employment all improved, signalling stronger factory activity and labour engagement. Supply-chain conditions also improved. Of the 17 industrial subsectors, 14 recorded expansion.
Similarly, the services sector extended its growth streak to 11 consecutive months, with its PMI increasing to 56.4 points. Business activity, new orders, employment, and inventories all posted solid gains. All 14 service subsectors grew except for professional, scientific, and technical services, which remained flat. Motion pictures and music production saw the highest expansion within services.
Agriculture Maintains Longest Expansion Streak
Agriculture proved to be the most resilient sector, with its PMI climbing to 58.5 points in December. This marked the 17th straight month of expansion, the longest continuous growth streak among all sectors. General farming activities, new orders, employment, and raw materials inventory all recorded strong gains, with livestock posting the highest expansion among agricultural subsectors.
The CBN stated that this cross-sectoral performance points to robust growth momentum heading into the new year, reinforcing confidence in Nigeria's economic outlook for 2026.
Naira Closes 2025 on a Weaker Note
Despite the positive PMI data, the national currency faced headwinds at the end of the year. The Naira depreciated by ₦3.17 against the US dollar at the official foreign exchange window, closing at ₦1,445.68/$. This weaker close occurred despite sustained dollar sales by the CBN aimed at stabilising the market, capping a year defined by heavy intervention and persistent demand pressures.
The report was compiled by the CBN under the leadership of Governor Olayemi Cardoso and underscores a complex economic landscape where strong domestic activity coexists with currency market challenges.
