Nigerian Private Sector Activity Expansion
ABUJA (Reuters) – Nigerian private sector activity expanded for the second consecutive month in September as new orders saw an increase, particularly in chemical and pharmaceutical products, according to a central bank business survey released on Friday.
The central bank’s Purchasing Managers Index (PMI) for private-sector activity rose to 50.5 points in September from 50.2 points in August, surpassing the 50 point threshold that indicates growth in activity.
The PMIs are a set of indicators considered by the central bank’s monetary policy committee when making decisions on interest rates.
President Bola Tinubu‘s reforms to the currency market, along with the reduction of petrol and electricity subsidies, have escalated inflation, diminishing the purchasing power of Nigerians.
The PMI report revealed that 23 out of 36 sub-sectors experienced growth in September, with the cement sector showing the most significant increase, while transportation and warehousing faced the largest decline.
Sectors such as non-metallic mineral products, petroleum, and coal products demonstrated no change.
In an effort to combat inflation, the central bank has increased interest rates five times this year. However, analysts indicate that these rate hikes have elevated borrowing costs for businesses, negatively affecting overall economic activity.
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