Manufacturing sector expected to rebound with policy reforms
Manufacturing in Nigeria faced challenges in 2025, with quarterly declines and a real growth rate drop. However, stakeholders like the Manufacturers Association of Nigeria and the Centre for the Promotion of Private Enterprise are optimistic about a turnaround. Segun Ajayi-Kadir and Dr Muda Yusuf highlight that improvements depend on effective policy execution and structural reforms. Projections suggest better growth and GDP contribution if key measures are implemented.
TLDR
- The Manufacturers Association of Nigeria projects a 3.1% real growth rate and a 10.2% contribution to GDP for manufacturing in 2026, contingent on new tax laws and the Nigeria First policy.
- Segun Ajayi-Kadir notes that sector recovery relies on incentives, the National Single Window Project, and industrial policy alignment.
- The naira is expected to appreciate, and inflation is projected to moderate to 14% in 2026, with headline inflation easing to 14.45% in November 2025 from 16.05% in October.
- Dr Muda Yusuf of the CPPE warns that structural issues like energy and logistics costs remain major risks, requiring long-term solutions.
- Both groups urge the government to maintain macroeconomic stability, reform the power sector, and support domestic manufacturers through smart trade and procurement policies.
