May 26 (THEWILL) — Nigeria’s manufacturing sector staged a strong rebound in the first quarter of 2026, with its contribution to real Gross Domestic Product (GDP) rising sharply to 9.57 percent, signalling renewed industrial momentum after a weak close to 2025.
The sector recorded stronger production activity across cement, food processing, industrial materials, and consumer goods manufacturing, while sustaining its position as one of the country’s largest non-oil tax contributors.
Despite the recovery, manufacturers continue to battle elevated production costs, foreign exchange volatility, energy pressures, and logistics bottlenecks threatening long-term expansion.
According to the latest data released by the National Bureau of Statistics, manufacturing contributed 9.57 percent to Nigeria’s real GDP in Q1 2026, slightly lower than the 9.62 percent recorded in the corresponding period of 2025, but significantly higher than the 7.40 percent contribution posted in the fourth quarter of 2025.
The NBS report showed that the sector recorded stronger year-on-year and quarter-on-quarter growth during the review period, reflecting a gradual recovery in industrial production and factory output.
Real GDP growth in the manufacturing sector stood at 3.29 percent year-on-year in Q1 2026, outperforming both the corresponding quarter of 2025 and the preceding quarter by 1.60 percentage points and 2.17 percentage points respectively.
On a quarter-on-quarter basis, manufacturing growth was estimated at 3.59 percent, while nominal GDP growth in the sector rose to 10.22 percent year-on-year, compared to 5.80 percent recorded in the previous quarter.
The sector also contributed 10.08 percent to nominal GDP during the quarter, up from 8.34 percent in Q4 2025, although lower than the 10.78 percent recorded in Q1 2025.
The improved performance was attributed to increased activity in consumer goods production, cement manufacturing, construction materials, and food processing industries, supported by improving business activity and gradual macroeconomic stabilisation.
The rebound comes after manufacturing accounted for 8.05 percent of Nigeria’s real GDP in full-year 2025, below the 8.24 percent recorded in 2024. The sector also maintained strong tax contributions to government revenue.
According to NBS data, manufacturing generated a combined N1.17 trillion in Value Added Tax revenue in 2025, significantly higher than the N803.53 billion recorded in 2024.
Nigeria’s overall economy expanded by 3.89 percent year-on-year in Q1 2026, while nominal GDP at basic prices rose to N110.79 trillion from N94.05 trillion recorded in the corresponding quarter of 2025.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
