Nigeria’s manufacturing sector plunges as GDP contribution declines by 20.95% in 6 months
Nigeria’s manufacturing sector has seen a significant decline in its contribution to the nation’s GDP, dropping by 20.95% in the first half of 2024, according to reports from the National Bureau of Statistics (NBS).
This decline underscores the severe challenges the sector faces due to economic and infrastructural hurdles. At the end of 2023, the sector contributed 16.04% to Nigeria’s GDP, but this figure fell to 12.68% by Q2 2024, indicating a sharp contraction over just six months.
The sector’s struggles are highlighted by a drastic reduction in nominal GDP growth, which was just 1.91% year-on-year in Q2 2024, compared to 29.90% growth in the same period in 2023.
This 27.99-percentage-point drop reflects the sector’s inability to sustain output amid mounting pressures. Real GDP growth also saw a concerning decline, with the sector’s contribution to overall GDP falling from 9.98% in Q1 2024 to 8.46% in Q2 2024.
These figures point to deepening structural weaknesses that are hampering the sector’s ability to grow and thrive.
The declining performance of Nigeria’s manufacturing sector highlights the urgent need for targeted interventions, including policy reforms, infrastructure improvements, and enhanced access to finance.
Addressing these issues is critical to reversing the sector’s downward trend and ensuring its continued role in driving Nigeria’s economic growth and development.
Without these efforts, the sector’s decline could have far-reaching consequences for the broader economy.