Nigeria’s economic activity slipped into contraction in April 2026, as rising global tensions and weakening demand slowed business performance across key sectors, according to the Central Bank of Nigeria (CBN).
The CBN’s latest Purchasing Managers’ Index (PMI) report showed the composite index fell to 49.4 points, dropping below the 50-point mark that separates growth from decline.
This marks the end of 16 months of expansion and signals a broad slowdown in economic activity.
A cursory review of the data by Pinnacle Daily shows that the downturn was driven largely by weakness in the services and industrial sectors.
The services sector recorded the sharpest decline, falling to 48.8 points, its first contraction in 14 months, as demand dropped and businesses cut back on hiring and inventory.
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The industry sector also slipped into contraction at 49.5 points, with declines in new orders and employment, although production output remained slightly above the growth threshold.
In contrast, agriculture remained the only bright spot, expanding for the 21st consecutive month at 50.2 points.
The sector’s growth was supported by increased farming activities and employment, even as it faced softer demand.
While demand is cooling across the economy, new orders dropped to 48.4 points, marking the steepest decline among key indicators, while employment and overall output also dipped below the growth line.
Analysts say this suggests businesses are becoming more cautious.
At the same time, costs continue to rise. Input and output prices increased in April, meaning businesses are still passing higher production costs on to consumers.
In the industrial sector, input costs surged significantly, adding pressure on manufacturers.
Out of 36 subsectors tracked, more than half recorded declines.
The hardest-hit areas included primary metals, transportation and warehousing, and electrical equipment, while forestry, education services, and cement production showed growth.
CBN linked the slowdown partly to rising geopolitical tensions in the Middle East, which are increasing uncertainty and affecting business confidence.
The data points to a fragile economic outlook, where slowing demand and rising costs are combining to squeeze businesses and consumers alike.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X