Lagos, Nigeria – Nigeria’s manufacturing sector accounted for 8.05 percent of real GDP in 2025, down from 8.24 percent recorded in 2024, according to the National Bureau of Statistics’ Nigerian Gross Domestic Product Report for the fourth quarter of 2025.
The decline in contribution comes despite a slight improvement in annual real growth, underscoring the sector’s weak structural momentum within the broader economy.
Okay News reports that real GDP growth in manufacturing stood at 1.13 percent year-on-year in Q4 2025, lower than the same quarter of 2024 and lower than the preceding quarter. For the full year, real growth in the sector was 1.41 percent in 2025, marginally higher than the 1.20 percent recorded in 2024. However, the modest growth was insufficient to prevent a drop in its overall share of the economy.
Manufacturing contributed 7.40 percent to GDP in Q4 2025, lower than the 7.62 percent recorded in Q4 2024 and below the third quarter of 2025. This indicates that even as the broader economy expanded by 4.07 percent in real terms in Q4 2025, manufacturing lagged behind other growth drivers. The sector comprises thirteen sub-activities, including oil refining, cement, food, beverages and tobacco, textiles, chemicals and pharmaceuticals, basic metals, and motor vehicles.
In nominal terms, manufacturing grew by 12.96 percent in 2025, up from 10.84 percent in 2024. In Q4 2025, nominal growth stood at 5.80 percent year-on-year, significantly lower than the 13.14 percent recorded in Q4 2024. Despite stronger nominal expansion, the sector’s share of nominal GDP also declined on an annual basis. Manufacturing contributed 8.46 percent to nominal GDP in 2025, compared to 8.85 percent in 2024. The divergence between nominal and real performance suggests that price adjustments may have supported value growth more than actual increases in production volumes.
This manufacturing output decline reflects ongoing structural challenges facing the sector. Addressing the factors behind this manufacturing output decline will require targeted policy interventions and investment in industrial capacity.
