Nigeria's Manufacturing Sector Records Strongest Quarterly Growth Since 2022
A report by the National Bureau of Statistics, NBS, has revealed a 3.29% year-on-year growth in Nigeria's manufacturing sector in the first quarter of 2026 (Q1'26). This is the sector's strongest quarterly growth since the first quarter of 2022, when manufacturing expanded by 5.89%.
Analysts were surprised by the performance, as they had expected a more modest growth. According to the Centre for the Promotion of Private Enterprise, CPPE, the sector's growth was driven by increased activities in consumer goods production, food processing, industrial materials, cement manufacturing, and other construction-related industries. The cement sector recorded a growth rate of 11.53% during the period, more than double the 4.94% achieved in Q1'25 and significantly above the 4.12% growth posted in Q4'25.
However, manufacturing's contribution to real GDP declined marginally to 9.57% in Q1'26 from 9.62% in Q1'25. The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, CPPE, Dr. Muda Yusuf, has warned that Nigeria's economy may struggle to achieve sustainable transformation without a stronger manufacturing base. In a policy brief on the Q1'26 GDP report, Yusuf identified the weak contribution of manufacturing to GDP and the contraction in electricity supply as key structural concerns. These issues are holding back Nigeria's economic growth.
Manufacturing's contribution to GDP remains below 10%, reflecting persistent challenges including high energy costs, elevated interest rates, poor infrastructure, logistics bottlenecks, and policy uncertainties. Yusuf urged policymakers to intensify efforts to address the constraints facing manufacturers. Sustained industrial growth is critical to broadening Nigeria's economic base, creating jobs, and strengthening long-term economic resilience.
The data released by the NBS showed that manufacturing contributed 10.08% to nominal GDP in Q1'26, lower than the 10.78% recorded in Q1'25 but higher than the 8.34% posted in Q4'25. Nominal GDP growth in the sector rose to 10.22% year-on-year, compared to 5.80% in the preceding quarter. As a result of the increased activities in various industries, the sector's performance improved significantly.
Analysts pointed out that the Manufacturers Association of Nigeria, MAN, had projected a 3.1% growth rate for the sector in 2026 and anticipated its contribution to real GDP would rise to 10.2%. While the Q1 growth performance slightly exceeded the association's annual projection, the sector's GDP contribution remained below expectations.
According to the NBS, real GDP growth in manufacturing was higher than the same quarter of 2025 and exceeded the preceding quarter by 1.60 percentage points and 2.17 percentage points, respectively.