Nigeria’s economy grew by 4.43 per cent in the second quarter of 2026, but the latest figure may not tell the full story, as the Manufacturers Association of Nigeria (MAN) warned that the headline growth is masking serious weaknesses in the country’s industrial sector. MAN said the economy is becoming increasingly driven by services while manufacturing and other productive sectors continue to struggle.
According to MAN Director-General, Segun Ajayi-Kadir, services accounted for 56.62 per cent of GDP during the quarter, while the broader industrial sector contributed just 17.23 per cent. More worrying, industrial growth almost halved, falling from 7.46 per cent in Q2 2025 to 3.96 per cent in Q2 2026, with the electricity, gas, steam and air-conditioning supply segment contracting by 10.63 per cent.
Manufacturing also came under pressure, with its share of real GDP dropping from 9.57 per cent in Q1 2026 to 7.72 per cent in Q2, while real manufacturing growth edged down from 3.29 per cent to 3.24 per cent. Ajayi-Kadir blamed the weakening performance on high production costs, exchange-rate pressures, expensive credit and rising electricity tariffs, warning that continued dependence on services and extraction could leave Nigeria vulnerable to economic shocks.
MAN is calling for urgent measures to rebuild the productive economy, including improved electricity supply for industrial clusters, grants for manufacturers investing in solar and battery systems, credit guarantees to reduce lending costs and a dedicated foreign exchange window for raw materials and capital machinery. The association also wants stronger enforcement of local procurement, incentives for vehicle assembly and tax relief for domestic supply chains.
Adding another dimension to the debate, former Ogun State governor and senator representing Ogun East, Otunba Gbenga Daniel, argued that GDP growth alone cannot determine whether the Nigerian economy is truly improving. He said security and economic development are inseparable, pointing to the ability of Nigerians to find decent jobs, access farms safely, run profitable businesses and attract investment as the real test of economic progress.
source: vanguard
