Nigeria’s Manufacturing Sector Growth Slows to 10.22% in Q1 2026

According to the latest Gross Domestic Product report released by the National Bureau of Statistics, nominal GDP growth in the manufacturing sector stood at 10.22 percent year-on-year in Q1 2026, significantly lower than the 42.40 percent recorded in the corresponding quarter of 2025.

However, the sector showed improvement compared to the preceding quarter as growth rose by 4.43 percentage points from the 5.80 percent recorded in Q4 2025.

The NBS noted that the manufacturing sector comprises thirteen major activities including oil refining, cement, food, beverages and tobacco, textile and apparel, chemicals and pharmaceuticals, motor vehicle assembly, electrical and electronics, plastic and rubber products, and other industrial manufacturing activities.

Quarter-on-quarter, manufacturing growth was recorded at 9.07 percent during the period under review, indicating improving industrial activity despite broader macroeconomic constraints.

The sector contributed 10.08 percent to Nigeria’s nominal GDP in the first quarter of 2026, lower than the 10.78 percent contribution recorded in Q1 2025 but higher than the 8.34 percent contribution reported in the fourth quarter of 2025.

In real terms, manufacturing GDP growth stood at 3.29 percent year-on-year, reflecting stronger output performance compared to both the corresponding quarter of 2025 and the previous quarter.

The real growth figure represented an improvement of 1.60 percentage points from Q1 2025 and 2.17 percentage points higher than the growth recorded in Q4 2025.

Quarter-on-quarter real growth in the sector stood at 3.59 percent during the period.

Manufacturing contributed 9.57 percent to Nigeria’s real GDP in the first quarter of 2026, slightly lower than the 9.62 percent contribution recorded in the same period of last year but higher than the 7.40 percent contribution posted in the preceding quarter.

Analysts said the sector’s slower nominal growth reflects continued cost pressures linked to high energy prices, exchange rate volatility, logistics expenses and weak consumer demand affecting manufacturers across Nigeria.

Despite these challenges, stronger quarter-on-quarter performance and improved real growth suggest gradual recovery in industrial production, particularly in sectors such as cement, food processing and consumer manufacturing.

Industry stakeholders continue to call for improved power supply, stable foreign exchange access and lower financing costs to strengthen manufacturing competitiveness and support Nigeria’s industrialisation drive.