Nigeria's Manufacturing Index Hits Six-Month Low in January 2026 Amid Rising Costs and Weak Demand

In January 2026, Nigeria's manufacturing sector faced challenges as the manufacturing index dropped to a six-month low of 115.8 points. The slowdown was attributed to rising costs, weak demand, and structural issues, with the chemical, pharmaceutical, plastic, and rubber sub-sectors being the most affected.

The latest NESG-Stanbic IBTC Business Confidence Monitor revealed that overall business conditions remained in expansion territory, although momentum weakened. The Business Performance Index fell to 105.8 points in January from 112.0 points in December 2025, marking its lowest level in six months.

Despite the manufacturing slowdown, non-manufacturing activities demonstrated strength, acting as a stabilizing factor in the economy. The report highlighted a broad-based slowdown across various sectors, indicating post-festive cost pressures and weak consumer demand as key drivers.

The future business expectations index is projected to decline further, reflecting ongoing vulnerabilities in manufacturing and trade despite some growth in the non-manufacturing sector.