Nigeria’s manufacturing sector contributed N4.128 trillion to the country’s Gross Domestic Product in the second quarter of 2026, marking a 3.3 percent year-on-year increase. This comes amid a slight improvement in confidence among manufacturers, even as the sector continues to battle serious structural challenges.
The latest data from the National Bureau of Statistics shows that while the sector grew year-on-year, it recorded a sharp 15.9 percent drop compared to the first quarter. The Manufacturers Association of Nigeria (MAN) said its CEO Confidence Index rose to 52.1 points in Q2, up from 48.7 in the previous quarter. However, it noted that the improved sentiment was driven more by future expectations than actual performance during the period.
MAN’s Director-General, Segun Ajayi-Kadir, expressed concern over the broader industrial picture. He pointed out that overall industrial growth fell to 3.96 percent in Q2’26 from 7.46 percent the previous year. He attributed part of the decline to a contraction in the electricity, gas and air-conditioning segment. The manufacturing sector’s share of real GDP also dropped from 9.57 percent in Q1 to 7.72 percent in Q2.
Growth within the sector was uneven. Oil refining and cement recorded strong expansions, while labour-intensive segments like textiles and motor vehicle assembly contracted. Food, beverage and tobacco, which remains the largest manufacturing group, grew modestly at 2.79 percent.
Business analysts described the performance as resilient given the prevailing difficulties with power supply, financing and high production costs. They called for urgent reforms in the power sector and targeted support for high-employment value chains to strengthen the sector’s contribution to the economy.
