Nigeria’s Manufacturing Sector Poised for Recovery Amid Calls for Reform

Nigeria’s manufacturing sector continues to experience slow growth, extending into the second quarter of 2025, as operational inefficiencies at ports and limited local raw materials hamper expansion.

Industry experts warn that the sector’s underperformance threatens the country’s broader industrialisation ambitions, which rely on a thriving manufacturing base to diversify the economy and reduce import dependence. Gabriel Idahosa, President of the Lagos Chamber of Commerce and Industry, highlighted that the N14 trillion deficit in manufacturing in H1 2025 reflects a mismatch between domestic production capacity and demand for raw materials.

Stakeholders are urging the Federal Government to accelerate the Nigeria First policy, which prioritises locally made products in public procurement, while encouraging manufacturers to leverage state-level energy solutions to mitigate high production costs.

Comprising 13 key activities from food and beverages to automotive assembly the manufacturing sector remains a cornerstone of Nigeria’s economic expansion. Experts caution that without targeted reforms and enhanced local capacity, the sector’s contribution to GDP may continue to lag, limiting the country’s path to sustainable industrialisation.