Manufacturing Sector Rebounds, Contributes 9.57% to GDP

The manufacturing sector contributed 9.57% to real GDP in Q1 2026, according to the National Bureau of Statistics (NBS), marking a rebound from the 7.40% share in Q4 2025.

Although slightly lower than the 9.62% contribution in Q1 2025, the sector showed stronger growth momentum, with real GDP growth at 3.29% year-on-year, surpassing both the previous quarter and the same period last year.

Quarter-on-quarter growth stood at 3.59%, while nominal GDP growth in manufacturing rose 10.22% year-on-year, compared to 5.80% in Q4 2025.

The sector contributed 10.08% to nominal GDP, down from 10.78% in Q1 2025 but higher than 8.34% in Q4 2025.

The NBS noted: “Real GDP growth in the manufacturing sector in the first quarter of 2026 was 3.29% (year-on-year), higher than the same quarter of 2025 and higher than the preceding quarter by 1.60 percentage points and 2.17 percentage points respectively.”

The rebound was driven by increased activity in consumer goods, cement, food processing, industrial materials, and construction-related industries.

VAT contributions also underscored the sector’s importance. Manufacturing generated ₦1.17 trillion in VAT revenue in 2025, up from ₦803.53 billion in 2024, with quarterly collections ranging between ₦286.95bn and ₦297.68bn.

Despite the gains, manufacturers continue to face structural challenges such as high electricity costs, logistics bottlenecks, insecurity, exchange rate instability, multiple taxation, and rising production expenses.

Nigeria’s overall economy grew 3.89% in real terms in Q1 2026, with aggregate nominal GDP rising to ₦110.79 trillion, up from ₦94.05 trillion in Q1 2025.