Investors Withdraw from Nigeria's Manufacturing Sector

The Manufacturers Association of Nigeria (MAN) has expressed concerns over a substantial retreat of investors from the manufacturing sector, with foreign investment plummeting by 54.11% in the first nine months of 2025, totaling $463.52 million, compared to $1.01 billion in the same period in 2024. Despite an overall increase in capital imports to Nigeria, which surged by 131.96% to $16.78 billion, the manufacturing sector's appeal has diminished due to persistent challenges such as high production costs, macroeconomic uncertainties, and infrastructural deficiencies.

Segun Ajayi Kadir, the Director General of MAN, noted that the lack of investor confidence is driven by these adverse conditions, including double-digit interest rates and regulatory inconsistencies. Muda Yusuf, Chief Executive Officer of the Centre for Promotion of Private Enterprise, highlighted that the majority of capital inflows are directed towards the banking and financial sectors, indicating a structural weakness in the economy that limits growth in manufacturing and related sectors.