Manufacturing Leads Nigeria's Industrial Output Growth

A report by the Nigerian Economic Summit Group (NESG) indicates that the manufacturing sector has grown to be the largest contributor to Nigeria's industrial output, increasing its share to 50.1% in the first quarter of 2026 from 28.2% in 2010. The report, titled “H1-2026 State of the Economy, Turning Potentials into Progress: Accelerating Nigeria’s Industrialisation for Economic Transformation and Inclusion,” states that manufacturing accounted for 76.5% of total industrial employment in 2023, up from 73.2% in 2017.

The industrial sector includes manufacturing, construction, electricity supply, water supply, and mining and quarrying. Construction and oil & gas followed manufacturing, contributing 23.8% and 21.1% to industrial output, respectively, in 2025.

Despite a rebound in manufacturing output, its contribution to real GDP remained below 10% throughout the review period, reflecting low capacity utilization and sluggish productivity growth. The share of manufactured goods in Nigeria's total exports fell from 4.3% in Q3 2025 to 1.4% in Q1 2026.