Nigeria Manufacturing Sector Faces Economic Pressure Amidst Market Shifts

Nigeria's manufacturing sector is currently leaving a significant portion of its $29.4 billion market to foreign producers, marking a major shift in the country's industrial landscape. This shift highlights a critical opportunity for domestic manufacturers to expand capacity and retain value within the economy. The report points to more than N40 trillion in untapped manufacturing opportunities across the country, suggesting that industrial capacity could be expanded to retain more economic value. However, this potential comes against a backdrop of weakening manufacturing weight in the broader economy. The sector's contribution to gross domestic product has dropped from 8.42 per cent in 2023 to 8.05 per cent in 2025, indicating that manufacturing has not kept pace with broader economic growth. The report examines investment opportunities across five major subsectors including light manufacturing, packaging, food and agro-processing, textiles, apparel and leather, chemicals and pharmaceuticals, cement and steel, and mapping the states where production capabilities are concentrated. The South-West remains the country's largest manufacturing zone, while other areas have developed in a