According to a Central Bank of Nigeria report released yesterday, business activity dropped to 49.4 on the Purchasing Managers’ Index scale, which signals a contraction because anything below 50 means the economy is shrinking rather than growing.
The decline was mainly felt in industries and services, where businesses reduced output and activity weakened. However, the agriculture sector still held up relatively well, helping to soften the overall impact of the slowdown.
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.”
This was driven largely by weaker demand and slowing business momentum across key sectors. A closer look at the composite index reveals that the downturn was broad-based. Output slipped to 49.7, reflecting reduced production levels, while new orders fell more sharply to 48.4, signalling that fewer customers are placing fresh demand for goods and services.
Employment also weakened, dropping to 49.6, as firms slowed hiring in response to uncertain business conditions. Together, these indicators point to a general loss of momentum across the economy. Inventory trends accentuated the slowdown.
