The Manufacturers Association of Nigeria (MAN) has raised the alarm over the weakening performance of Nigeria’s industrial sector, saying the sector’s real growth nearly halved from 746 per cent in the second quarter of 2025 to 3.96 per cent in Q2 2026.
In a statement on Thursday, MAN Director-General, Segun Ajayi-Kadir, said the decline was particularly worrying despite the overall real Gross Domestic Product (GDP) growth of 443 per cent recorded in Q2 2026 by the National Bureau of Statistics (NBS).
According to him, the headline GDP growth masks significant weaknesses in the real sector, particularly manufacturing, which continues to face severe cost and structural pressures
“While headline growth suggests economic resilience, a critical analysis reveals a widening disconnect between macroeconomic figures and real-sector vitality,” Ajayi-Kadir said
He noted that the economy’s growth remained disproportionately driven by services, which accounted for 5662 per cent of GDP, while the broader industrial sector contributed 17.23 per cent.
“The growth trajectory remains disproportionately service-driven (5662% of GDP),
while the broader industrial sector (1723% of GDP) is visibly suffocating under
severe structural headwinds We must raise a critical alarm about the precipitous
plunge in overall industrial growth, which has nearly halved, from a robust 746%
in Q2 2025 to a troubling 396% in Q2 2026,” the MAN DG said.
Ajayi-Kadir said the sharp deterioration in industrial performance was driven mainly by Electricity, Gas, Steam and Air Conditioning Supply, which contracted by 1063 per cent during the quarter.
He also expressed concern over the performance of manufacturing, saying its share of real GDP dropped from 957 per cent in Q1 2026 to 7.72 per cent in Q2 2026.
Although manufacturing recorded a marginal year-on-year real growth of 324 per cent in Q2 2026, compared with 3.29 per cent in the first quarter, Ajayi-Kadir said the decline in its relative contribution to economic output was a warning signal.
“The drop in manufacturing’s contribution to GDP from 957 per cent to 7.72 per cent in a single quarter highlights severe cost pressure, a high exchange rate, outrageous interest rates and exorbitant electricity tariffs facing domestic manufacturers,” he said.
He added that the modest growth recorded by manufacturing did not reflect a broad-based industrial recovery
“Although manufacturing expanded year-on-year by 324 per cent, its declining relative share indicates that industrial expansion is lagging behind broader economic activity,” Ajayi-Kadir said.
The MAN DG further pointed to significant differences in the performance of manufacturing sub-sectors, noting that growth was concentrated in capital-intensive and heavy industrial activities
According to Ajayi-Kadir, the weak performance of consumer-oriented manufacturing was being compounded by declining household purchasing power and persistent food inflation
He warned that continued weakness in labour-intensive industries could have serious consequences for employment
The MAN DG also warned that sluggish growth in basic consumer goods manufacturing could worsen inflationary pressures
He further argued that Nigeria’s continued reliance on services and primary commodity exports would not provide the foundation required for sustainable economic expansion
To reverse the trend, MAN called for urgent measures to improve industrial energy security, reduce the cost of credit and ensure manufacturers have predictable access to foreign exchange for raw materials and capital equipment
The association proposed that the Nigerian Electricity Regulatory Commission approve Eligible Customer status for contiguous industrial clusters to enable them enter into direct bulk power purchase agreements with generating companies
It also called for a matching-grant facility through the Bank of Industry to support manufacturers investing in captive solar photovoltaic systems and battery storage
On financing, MAN proposed a dedicated credit guarantee scheme through the Ministry of Finance Incorporated and the Development Bank of Nigeria to de-risk commercial lending to manufacturers and help reduce borrowing costs