Nigeria’s manufacturing industry suffered a massive N1.2 trillion loss between 2019 and 2023 but is showing signs of recovery under President Bola Tinubu’s administration, a new economic report has revealed.
The report, Inside Nigeria’s Quiet Recovery, released by research firm Quartus Economics, attributes the decline to the combined blows of the COVID-19 pandemic, the controversial naira redesign policy, and sluggish growth in agriculture and services.
It noted that while the economy contracted sharply during the “years of stall”, recovery began in 2024 with a year-on-year GDP growth of 4.1 per cent. Manufacturing, which had plunged by 21 per cent over the four-year period, recorded a marginal rebound of N207 billion or 1.19 per cent in 2024.
“Between 2019 and 2023, more than half of Nigeria’s industry categories shrank in value,” the report stated. “By the end of 2024, however, only seven industries were still in decline.”
Subsectors Driving the Comeback
The rebound was led by chemical and pharmaceutical products, which rose by N33.9 billion (2.37 per cent), and the food, beverage, and tobacco subsector, which added N81.5 billion (2.5 per cent).
Non-metallic products grew by N15.5 billion (1.72 per cent), motor vehicles and assembly by N1.29 billion (1.27 per cent), and basic metals by N3.33 billion (0.62 per cent).
Despite the gains, some industries remain mired in losses. The textile, apparel, and footwear sector plunged by N72 billion (1.58 per cent), oil refining contracted by a staggering 14.67 per cent, and pulp and paper recorded only a marginal 0.44 per cent increase. Electrical and electronics manufacturing edged up by 1.27 per cent.
Call for Urgent Government Action
Reacting to the figures, the Manufacturers Association of Nigeria (MAN) said the rebased GDP confirmed the industrial sector’s underperformance and urged the Federal Government to make manufacturing a top economic priority.
“The GDP growth is welcome, but the numbers still tell a story of underutilised potential,” MAN stated. “We cannot achieve sustainable economic growth without a robust manufacturing base.”
Recent data from the National Bureau of Statistics showed that Nigeria’s GDP grew by 3.13 per cent in Q1 2025, up from 2.27 per cent in the same period of 2024, with services contributing the largest share of 57.5 per cent to the economy.
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