Nigerian Private Sector Activity Expands in September

ABUJA (Reuters) – Nigerian private sector activity expanded for the second straight month in September as new orders rose, especially for chemical and pharmaceutical products, according to a central bank business survey released on Friday.

The central bank's purchasing managers index (PMI) of private-sector activity increased to 50.5 points from 50.2 points in August, remaining above the 50 point threshold, which indicates growth in activity.

The PMIs are one of the indicators the central bank's monetary policy committee considers when setting interest rates.

President Bola Tinubu's reforms in the currency market, along with cuts to petrol and electricity subsidies, have fueled inflation, impacting Nigerians' purchasing power.

The PMI report revealed that 23 out of 36 sub-sectors reported growth in September. The cement sector experienced the highest increase, while transportation and warehousing sectors faced the most significant decline.

Sector performance showed that non-metallic mineral products, as well as petroleum and coal products, remained unchanged.

The central bank has raised interest rates five times this year to combat inflation, though analysts suggest this has increased borrowing costs for businesses, adversely affecting economic activity.