Nigerian Manufacturers Aim for 10.2% GDP Contribution in 2026 Amid Policy Optimism
Nigerian manufacturers are entering 2026 with renewed optimism, aiming to boost their sector’s contribution to the country’s Gross Domestic Product (GDP) to 10.2%, according to the Manufacturers Association of Nigeria (MAN). The sector’s growth is expected to rise to 3.1% from a fragile 1.6% in 2025, when it contributed 7.62% to GDP. Industry leaders attribute this optimism to a mix of government policy reforms, credit availability, and strategic investment in local production.
The optimism is anchored on three main pillars: the effective rollout of incentives under new tax laws, the operationalisation of the National Single Window Project, and the purposeful implementation of the Nigeria Industrial Policy aligned with the “Nigeria First” framework. In addition, manufacturers are banking on lower lending rates and completed bank recapitalisation exercises to increase credit access, which could enhance capacity utilisation and investment in the sector.
Technology adoption has also been a driving force. PwC noted that 2025 saw accelerated deployment of AI-powered predictive maintenance, blockchain systems, automation, and IoT-driven smart factories. These trends are expected to continue in 2026, supporting manufacturing output growth of around 3.1% alongside new tax incentives and harmonised levies. Investment inflows are projected to rise moderately if credit support, tax incentives, and infrastructure improvements persist.
Despite this positive outlook, experts caution that structural challenges remain. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprises (CPPE), warned that energy, logistics, and port inefficiencies could limit growth. Similarly, the MAN CEO’s Confidence Index highlighted ongoing pressures from high energy costs, expensive financing, and dependence on imported raw materials, which contributed to 18,935 job losses in the first half of 2025.
Still, manufacturers remain hopeful. Policy adjustments, such as interest rate cuts, suspension of certain levies, tax incentives for local sourcing, and the anticipated Presidential assent on 30% value addition on exports, are expected to strengthen the sector. MAN’s Director General, Segun Ajayi-Kadir, emphasized that with private sector-driven industrial policies, Nigerian manufacturing could expand productive capacity, improve competitiveness, and help transform the nation’s wealth creation.
source: This day