Nigeria’s agricultural sector expansion continued for seven consecutive months, driven by naira stability and moderated inflation, according to Central Bank purchasing manager data.
The Purchasing Manager’s Index reached 52.3 points in June, indicating sustained private sector expansion with agriculture leading sectoral growth. The agriculture PMI climbed to 55.2 points, marking an eighteen-month high performance.
Central Bank data shows continued business activity expansion above the 50-point threshold, reflecting improved macroeconomic conditions. Agriculture sector improvements supported overall economic performance despite modest declines in industry and services sectors.
“The increase signifies recovery from seven months of contraction and highlights enhanced performance in crop production and agricultural support,” stated Adewale Oyerinde, Director-General of the Nigeria Employers’ Consultative Association.
Agricultural improvements stemmed from enhanced farming activities and inventory management. The sector’s strong performance reflects government intervention effectiveness and supportive policy measures beginning to yield measurable results.
Cordros Securities research indicates agriculture sector expansion reached the highest level since December 2022, supported by improved general farming activities and better inventory management systems.
“We anticipate sustained expansion of private sector activities, driven by improving macroeconomic conditions such as naira stability and easing inflationary pressures,” researchers noted in their economic outlook.
Services sector PMI moderated to 51.3 points from 51.7 points in May, reflecting slower growth in accommodation, food services, education, and financial insurance subsectors. Industry PMI remained expansionary at 51.4 points despite slight decline.
Dr. Muda Yusuf, CEO of the Centre for Promotion of Private Enterprise, emphasized the positive agricultural performance indicators. “Government interventions and support measures in the sector are beginning to yield results, offering hope for sustained agricultural growth.”
However, experts caution that persistent inflationary pressures and tight financial conditions could impact overall economic performance. Continued policy measures and strategic interventions remain essential for sustaining growth momentum.
The agricultural sector’s robust performance supports food security objectives and rural employment generation. Enhanced productivity contributes to inflation moderation and foreign exchange earnings through reduced food import dependency.
About The Author
