The Central Bank of Nigeria (CBN) has warned that rising input costs across major sectors could trigger a fresh wave of consumer price inflation, as many businesses struggle to sustain current levels of cost absorption.
This caution was highlighted in the June 2025 Purchasing Managers’ Index (PMI) report released by the apex bank. According to the report, input prices in the composite economy—as well as in the industry, services, and agriculture sectors—surpassed output prices during the review period, raising concerns about future price stability.
“The increase in the gap between higher input costs and output price tends to mount pressure on business profit margins,” the CBN stated. “Cost absorption by firms is likely to be unsustainable in the long term and may foreshadow future consumer price inflation.”
The agriculture sector recorded the highest cost absorption index at 9.8 points in June, indicating the widest gap between input and output prices. The services sector, on the other hand, had the lowest gap at 4.4 points.
Despite the mounting cost pressures, all three sectors—industry, services, and agriculture—registered growth in business activity during the month. The composite PMI stood at 52.3 index points in June, reflecting economic expansion for the sixth consecutive month.
Out of the 36 subsectors surveyed nationwide, 25 reported growth, pointing to a broad-based recovery. The industry sector posted a PMI of 51.4 index points, with nine of its 17 subsectors recording increased production. The services sector followed closely with a PMI of 51.3 points, as 11 out of 14 subsectors saw a rise in business activity.
Leading the pack was the agricultural sector, which posted a PMI OF 55.2 index points, the highest among the three major sectors and also marked its eleventh straight month of expansion. The CBN attributed this sustained growth to increased farming activities, with all five subsectors under agriculture recording positive performance in June.
 has warned that rising input costs across major sectors could trigger a fresh wave of...){kind=link}