Nigeria's Manufacturing Sector Faces Raw Material Crisis

Nigeria's ambition to become Africa's industrial hub is threatened by its high dependence on imported raw materials, which met 64% of local demand for manufactured goods in 2025, representing a $29.4 billion market. The Nigerian Manufacturing Opportunity Report 2026, launched at the 54th Annual General Meeting of the Manufacturers Association of Nigeria, identified over N40 trillion in untapped manufacturing opportunities.

In the first half of 2025, Nigeria imported raw materials worth approximately N3.53 trillion, with N1.72 trillion sourced from Asia. Although raw-material imports fell by 4.5% to N3.37 trillion in the first half of 2026, raw-material exports doubled to N3.84 trillion.

Otunba Francis Meshioye, President of MAN, expressed concerns over the reliance on imports, stating that increasing local production of finished goods without enhancing domestic raw material production would limit value addition. He urged the government to implement industrial policies that support local content and reduce regulatory costs.