The Central Bank of Nigeria (CBN) has announced the reintroduction of periodic reports on key economic indicators as part of its efforts to enhance transparency in the country’s economic direction.
This is contained in a circular signed by the acting director of corporate communications of the apex bank, Sidi Ali Hakama, on Tuesday.
CBN said the report will include the Purchasing Managers’ Index (PMI), Business Expectations Survey (BES), Inflation Expectations Report, and other macroeconomic indicators will offer stakeholders timely and accurate insights into the country’s economic performance.
What the CBN is saying
According to the circular, the apex bank said the reports will be periodically released on its website, making them easily accessible to the public.
The circular reads:
“The Central Bank of Nigeria (CBN) has reintroduced the publication of several key economic reports, reaffirming its commitment to fostering transparency and accountability in the Nigerian economy.
“These reports, including the Purchasing Managers’ Index (PMI), Business Expectation Survey (BES), Inflation Expectation Report, and other macroeconomic indicators, will provide stakeholders with timely and accurate insights into the country’s economic performance.
“The reintroduction of these reports, part of the ongoing data enhancement initiative within the CBN, aims to ensure that the public, policymakers, and the business community have access to essential economic indicators.
“The PMI, which assesses the health of the manufacturing, services, and agricultural sectors, along with the business and household expectations reports, are crucial tools for understanding Nigeria’s economic climate.”
CBN’s Effort to Drive Transparency
Accordingly, Hakama said this initiative is part of CBN’s effort to drive transparency and engage all stakeholders in the economic direction of the country.
She also encouraged investors, media, and the general public to use these reports to gain a more comprehensive understanding of Nigeria’s economic dynamics.
“This initiative is part of the Bank’s broader efforts to enhance transparency, promote informed decision-making, and support economic growth. The reports will be periodically released on the Bank’s website (www.cbn.gov.ng), ensuring that they are easily accessible to all.
“The CBN encourages economists, analysts, investors, media, and the general public to use these reports to gain a more comprehensive understanding of Nigeria’s economic dynamics, thereby fostering a more inclusive economic discourse,” she said.
What you should know
Following the global economic shock after the Covid-19 pandemic in 2020, the CBN discontinued the publication of data on inflation expectations and other economic indices in the country.
The former apex bank governor, Godwin Emefiele, stopped publishing the monthly Purchasing Managers’ Index (PMI) Survey Report, among others.
How the PMI works
The PMI Survey report, which is a monthly index that indicates the changes in the level of business activities in the current month compared with the preceding month, helps to give an indication of how the economy is performing on a monthly basis.
The report is divided into two components, the manufacturing and non-manufacturing PMI.
The index usually ranges between 0 and 100. A composite PMI above 50 points indicates that the manufacturing/non-manufacturing economy is generally expanding, 50 points indicates no change and below 50 points indicates that it is generally contracting.
The survey is conducted by the Statistics Department of the CBN, with respondents being purchasing and supply executives of manufacturing and non-manufacturing organizations in all 36 states in the country including the Federal Capital Territory (FCT).