Nigeria’s Business Growth Continues While Households Feel the Pinch

Nigeria’s business activity grew in September 2026, but households are feeling more worried about the economy, finances, and prices. This is according to new reports from the Central Bank of Nigeria (CBN).

The CBN’s Purchasing Managers’ Index (PMI) for September showed that overall economic activity expanded for the fourth month in a row. The Composite PMI rose to 53.0 points from 52.7 points in August.

The survey took place between 7 and 11 September and involved 1,900 purchasing and supply executives from the Industry, Services, and Agriculture sectors. Out of 32 subsectors surveyed, 23 saw growth while nine experienced declines.

The boost was driven by stronger industrial activity. The Industry PMI jumped to 52.0 points in September from 50.6 points in August, marking a second month of growth.

The Output Index for the sector went up to 53.2 points, thanks to increases in new orders and employment. The Raw Materials Inventory Index also saw a rise to 51.1 points from 49.4 points in August.

The Services sector remained in growth at 53.2 points, slightly down from 53.3 points in August. The Agriculture PMI dipped a bit to 53.1 points from 53.4 points. CBN noted that agriculture has now recorded 26 months of growth in a row.

Despite the growth in business activity, there was renewed pressure on input prices. The Composite input price index increased by 0.8 points in September, while the output price index fell by 0.5 points.

CBN stated that the September PMI indicates a “broadening recovery” in economic activity, but the rise in input price pressures needs careful watching.

Household Expectations

On the other hand, households are feeling less positive. In a different report, CBN’s September Household Expectations Survey revealed that the Overall Consumer Sentiments Index dropped sharply to -18.7 points from -9.9 points in August. This shows a growing pessimism about the economy.

The Economic Conditions Index stood at -21.5 points, while the Family Financial Situation Index was at -23.9 points. The Family Income Sentiments Index was -10.5 points. This indicates that households are worried about current economic conditions and their financial situations.

The report also showed that Nigerian households are more concerned about prices. The average price sentiment index rose to 33.5 points from 23.0 points in August, showing that people feel prices are still high. Among the items surveyed, households felt food and telecommunication services had the least price changes.

The Central Bank said households expect price pressures to stay high over the next three and six months. The price outlook indices stood at 29.7 and 28.4 points, respectively.

Meanwhile, Nigeria’s headline inflation eased slightly to 15.39 percent in August 2026 from 15.43 percent in July, according to the National Bureau of Statistics (NBS). Month-on-month inflation fell more sharply to 0.71 percent from 1.57 percent.

CBN noted that the cautious mood of respondents showed in household spending plans. Food remains the top spending priority, followed by transportation, household goods, education, and electricity and water.

Households are particularly hesitant to make big purchases. The sentiment indices for buying houses, cars, investments, and durable goods were all negative, at -68.2, -67.3, -50.7, and -49.5 points, respectively.

Buying conditions also remained weak. The index for consumer durables was at 24.8 points, while those for motor vehicles and buildings were at 24.2 points. All are below the 50-point mark.

The survey showed that 61.1 percent of respondents believe faster price increases will harm the Nigerian economy. Also, 62.2 percent prefer lower lending rates.

However, 45.1 percent favored higher interest rates if it helps control inflation, while 44.8 percent wanted lower rates, even if it means rising inflation.

Despite the weak sentiment in September, households expect their confidence to improve gradually. The Overall Consumer Sentiments Index is projected at -8.7 points next month, -0.4 points over the next three months, and 7.1 points over the next six months.

These mixed findings suggest that while business conditions improved in September, households are still struggling with high prices, interest rates, and worries about their finances. The Central Bank said households remained cautious, with weak buying conditions showing their concerns about their finances and the economy.