Nigeria’s manufacturing sector has hit a five-year low, with its contribution to non-oil exports dropping to 1.9 percent in the first half of 2024, down from 11.1 percent in 2020.
Rising production costs and poor infrastructure are hurting competitiveness, prompting calls for urgent reforms.
Nigeria’s manufacturing sector hit a five-year low, contributing 1.9 percent to non-oil exports in H1 2024, down from 11.1 percent in H1 2020.
It declined from 5.8 percent in H1 2021 and 2.3 percent in H1 2022, with a slight recovery to 2.5 percent in 2023.
Manufacturers attribute the downturn to rising production costs, high borrowing rates, and low consumer spending.
Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, stated that, poor infrastructure and high energy costs weaken local product competitiveness.
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He emphasized the need for a better business environment to help manufacturers thrive in global markets.
Despite challenges, manufactured exports increased from ₦254.2 billion in 2020 to ₦480.82 billion in 2024, mainly due to naira devaluation.
In Q2 2024, these exports reached ₦480.82 billion, a 126.65 percent rise from Q2 2023, while total exports were ₦19.42 trillion.
Major exports included unwrought aluminum alloys and submersible platforms, with significant demand across West Africa.
The data highlights the urgency for strategic reforms to enhance the competitiveness of Nigeria’s manufacturing sector in the global market.