NIGERIA’s economic activities under President Bola Ahmed Tinubu contracted for the last 13 months, according to a report by the Central Bank of Nigeria (CBN).

The report Purchasing Managers’ Index (PMI) released on Wednesday, August 14, by CBN, revealed that it contracted at 49.7 points as of July 2024.

The release of the PMI report came following CBN announcement on Tuesday, August 13 that it would resume the periodic publication of several economic reports to aid informed decision-making and business intelligence for economic managers.

One of the economic data to be published periodically is the PMI report, The ICIR reported.

The apex bank’s PMI showed that business activities across various sectors of the Nigerian economy have been suffering a contraction since

Nigerian President Bola Tinubu came into office on May 29, 2023, and announced during his inaugural speech the removal of petrol subsidies, followed by the CBN unification of the exchange rate.

The two policies, experts argued were ill-timed and poorly implemented, thereby stoking the economy and worsening the hardships faced by Nigerians.

The country’s headline inflation which rose to a new 28-year high in June surged to 34.19 per cent and the food inflation to 40.87 per cent

Other economic goods, notably energy costs have skyrocketed with the pump price of petrol jumping from about N195 per litre in May 2023 to over N1,000 per litre at present.

In the July report, CBN showed that the PMI sustained a contractionary trajectory to 49.7 points, signifying that economic activities were in the red from 48.8 points in June.

A PMI reading is calculated based on responses about the direction of change in various aspects of respondents’ business activities.

At above 50.0 points, it signals an expansion in business activities, while at below 50.0 points indicates a contraction.

“In July 2024, the composite PMI stood at 49.7 points indicating contraction in economic activities for the thirteenth consecutive month. However, the index shows improvement compared to the 48.8 points recorded in the previous month.

“Furthermore, Output Level, Suppliers’ Delivery Time and Stock of Inventory expanded. New Orders and Employment contracted at a slower rate compared to the levels recorded in the previous month,” CBN stated.

A breakdown of the report by sector showed that the agriculture, manufacturing, construction, mining and quarrying, electricity, gas, and water supply subsectors recorded contractions during the review month.

On the contrary, the services sector experienced expansion for the second consecutive month.

A cursory look at the index indicated that the industry sector PMI, at 48.3 points, marked the sixth consecutive month of contraction, although there was an improvement in industrial activities reflected in higher production levels and faster suppliers’ delivery times compared to the previous month.

According to the report, among the 17 subsectors surveyed, 11 recorded contractions, while the remaining six expanded.

The subsectors with the most significant contraction and expansion were transportation equipment and furniture and related products, respectively.

The apex bank report corroborated the Stanbic IBTC Bank’s PMI figure which reflected that business activities contracted to 49.2 points in July.