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Industries · Manufacturing

Manufacturing: food, cement, textiles and more

About 8% of the economy, led by food, beverages and tobacco. Growth is steady but slow, held back by energy, foreign exchange and borrowing costs.

Key figures

Manufacturing in numbers

Latest official figures. Shares and growth are in real terms (2019 prices) unless marked nominal.

+3.24%Real growth, Q2 2026+1.41% for 2025 as a whole

7.72%Share of real GDP, Q2 20268.05% in 2025; 8.46% of nominal GDP in 2025

+1.41%Real growth, 2025+1.20% in 2024

₦12.37trnFood, beverage and tobacco output, 2025Nominal; the largest manufacturing activity

+12.75%Cement, real growth, Q2 2026Driven by construction demand

−1.23%Textiles, real growth, Q2 2026Motor vehicles −1.02%

Growth against the economy

Manufacturing, Q2 2026+3.24%

Whole economy, Q2 2026+4.43%

Analysis

What drives the sector

Energy

Unreliable grid power means many factories run on diesel or gas generators.

Foreign exchange

Imported raw materials and machinery are priced in dollars.

Interest rates

High lending rates raise the cost of working capital and expansion.

Consumer demand

Household spending power, squeezed by inflation, sets demand for food and household goods.

Who is who

Regulators and main players

Federal Ministry of Industry, Trade and Investment

Industrial policy, incentives and trade measures.

Standards Organisation of Nigeria and NAFDAC

Product standards and food and drug regulation.

Manufacturers Association of Nigeria

The main industry body; publishes a manufacturers' CEO confidence index.

Export processing and free zones

Tax and customs incentives for export-oriented production.

Outlook

What to watch

We do not publish forecasts. These are the signals we follow for this sector.

PMI

The CBN and private purchasing managers' indices give a monthly read on factory activity.

Energy prices

Diesel and gas prices and grid supply to industrial clusters.

The naira

A stable rate makes import planning easier.

AfCFTA

Rules of origin and tariff cuts open regional markets for made-in-Nigeria goods.

Sources