The Central Bank of Nigeria revealed that economic activity increased for the second consecutive month in February 2025, with the Purchasing Managers Index reaching 51.4 index points.
According to the CBN’s February 2025 PMI Report, the Industry, Services, and Agriculture sectors all saw increase, with index points of 50.5, 51.1, and 53.1, respectively.
A detailed review of 36 sub-sectors within these industries indicated that 21 of them expanded, with the cement sub-sector leading the way.
On the other hand, 13 subsectors saw decreases, most notably the Nonmetallic Mineral Products subsector, while the Accommodation & Food Services and Plastics & Rubber Products subsectors saw no change.
Alongside the PMI results, businesses’ perceptions of the macroeconomy remained optimistic in February, according to the CBN’s Business Expectation Survey Report.
This optimism is partly attributed to favorable expectations regarding the exchange rate.
Respondent firms anticipate the Naira to appreciate in the coming months and foresee an increase in borrowing costs.
Despite this confidence, firms have found many hurdles to their operations.
The top concerns include high interest rates (75 index points), insecurity (73.9 index points), insufficient electricity supply (73.8 index points), excessive taxes (73 index points), financial restrictions (68.5 index points), and increased bank charges (67.6 index points).
In a different view, the CBN’s Consumer Expectation Survey Report revealed that families felt negative about the overall economy in February, showing an index of -19 points, which was better than the -23 points recorded in January.
Shoppers think that the prices of everyday products, both lasting and non-lasting, are high.
They also anticipate increases in costs related to housing, rent, telecommunications, vehicles, and electricity in the short to medium term.
Looking ahead, consumer confidence is predicted to progressively rise over the next three to six months.
However, households do not intend to spend a large amount of their income on houses or vehicles, preferring to spend on food and other necessities.
These findings highlight Nigeria’s cautiously optimistic economic environment, with firms expressing confidence in future economic prospects despite current issues, and consumers remaining apprehensive yet eager for incremental improvements.
