NESG Warns of Deindustrialization in Nigeria's Economy

The Nigerian Economic Summit Group (NESG) has raised concerns about the growing trend of deindustrialization in Nigeria, highlighting the weakness of the country's manufacturing sector, which remains heavily concentrated in a few subsectors. In its latest GDP alert for the fourth quarter of 2025, NESG noted that while Nigeria's economic growth is gradually improving, it is insufficient to tackle unemployment and significantly reduce poverty.

The think tank identified product constraints across key sectors, particularly agriculture, manufacturing, and trade, as major factors limiting the economy's ability to expand output and create jobs. NESG pointed out that persistent structural challenges, such as poor infrastructure, limited access to finance, unreliable electricity supply, and rising operational costs, continue to disrupt business activities.

The report also indicated that the manufacturing sector's growth has been sluggish for several quarters, driven largely by a few subsectors. However, NESG acknowledged positive developments in agriculture, which have contributed to a gradual decline in food inflation, emphasizing the importance of sustaining agricultural production to maintain stable food prices and support overall economic growth.