Nigeria’s PMI Hits 55.7 in January 2026: What “Expansion” Really Means for Jobs and Prices

Nigeria’s composite Purchasing Managers’ Index for January 2026 came in at 55.7, showing that business activity expanded again and extended the expansion run to 14 straight months.

This does not mean the economy is perfect. It simply means more businesses reported improvement than those that reported worsening conditions during the month.

What PMI really measures in plain English

PMI is a monthly survey that asks companies simple questions about what is happening right now. Are new orders rising or falling. Is output increasing. Are they hiring. Are suppliers delivering faster or slower. Are inventories growing.

The rule is straightforward. Above 50 means expansion. Below 50 means contraction. So 55.7 means the balance of responses is clearly positive. 

The growth was broad not just one sector

January’s reading was not driven by only one corner of the economy. The sector results showed expansion across industry, services, and agriculture.

Industry PMI was 56.0, with 14 of 17 subsectors expanding. Services PMI was 54.5, with 12 of 14 subsectors expanding. Agriculture PMI was 54.2, with all five subsectors expanding. Across the full survey, 31 of 36 subsectors recorded expansion.

That breadth matters because it suggests the improvement is not isolated. When many subsectors grow at the same time, it usually reflects wider demand, not a single one off boost.

What expansion can mean for jobs

When PMI stays comfortably above 50 for months, it often supports cautious job growth. Businesses are more likely to add shifts, extend working hours, or hire small numbers when orders and output are rising.

But PMI is not a jobs report. It is a direction signal. Expansion can support hiring, but it does not guarantee that job creation will be strong enough to absorb everyone looking for work.

The most important follow-up is whether companies keep seeing steady orders in February and March. If new orders stay strong, hiring is more likely to follow.

One practical detail in the January report is that input and output price indices moderated, and output prices fell more for the composite, services, and agriculture measures. In simple terms, cost pressure may be easing in some areas, even if prices in markets and shops still feel high. 

This matters because inflation does not drop only because people want it to. It drops when cost pressure eases and supply improves, and when businesses can plan without constantly raising prices to protect themselves.

What to watch next

First, whether PMI stays above 50 and does not fade quickly. Second, whether price pressures keep easing month after month. Third, whether companies report stronger hiring and better supply conditions, not just higher activity.

Nigeria’s PMI at 55.7 is a positive signal. The next test is whether that momentum shows up in better jobs, steadier prices, and stronger purchasing power.