Nigeria's Manufacturing Growth Fails to Cut Imports in 2026

Nigeria's manufacturing sector has shown growth, with real manufacturing GDP expanding by 3.24 percent year-on-year in Q2 2026. However, this growth has not translated into reduced import dependence, as the National Bureau of Statistics reported that Nigeria imported manufactured goods worth N9.51 trillion in Q2 2026, a 20.65 percent increase from N7.88 trillion in Q2 2025.

In contrast, manufactured goods exports were only N393.03 billion, down 51.10 percent from N803.81 billion in Q2 2025. This resulted in a substantial trade imbalance, with imports outpacing exports by more than 24 times in Q2 alone.

The manufacturing sector's contribution to real GDP fell to 7.72 percent from 7.81 percent a year earlier. Notably, while oil refining and cement production saw significant growth, sectors like textiles and motor vehicles experienced declines.

The data indicates that despite a stronger manufacturing sector, the scale of import substitution remains inadequate.