Tony Chukwunyem 
Analysts at Cowry Asset Management Ltd have said that adequate investment in infrastructure as well as “targeted reforms” are required to make Nigeria’s private sector play its crucial role in ensuring the country’s long-term economic growth.
The analysts stated this while commenting on the August 2024 Purchasing Managers Index PMI) report, recently released by the Central Bank of Nigeria (CBN ), which showed that the composite PMI stood at 50.2 points, signalling an expansion in economic activity for the first time in 13 months following a prolonged period of contraction.
According to the analysts, while the report indicates that the expansion was primarily driven by key groups in the private sector, especially services and agriculture, the sector is hindered by challenges such as limited credit access, inadequate infrastructure, inflationary pressures, and unreliable power supply.
As the analysts put it, “Cowry Research high – lights the positive shift in economic activity, with the August PMI marking the first expansion in over a year.
This recovery is primarily driven by improvements in the services and agricultural sectors, although the industrial sector remains in contraction.
“The analysis underlines that Nigeria’s private sector continues to be a crucial driver of sustainable economic growth, yet faces persistent challenges such as limited credit access, inadequate infrastructure, inflationary pressures, and unreliable power supply.
Investment in infrastructure and targeted reforms will be key to unlocking the full potential of these sectors and ensuring long-term economic growth.”
