Nigeria’s manufacturing sector grew 3.29 percent year-on-year in the first quarter of 2026, doubling from 1.69 percent in Q1 2025, as reforms in foreign exchange began to ease long-standing constraints on factory output.
The acceleration marks the sector’s strongest quarterly performance in four years when the sector grew 5.89 percent in the first quarter of 2022, according to data from the National Bureau of Statistics.
The report also showed that the sector’s real contribution to GDP in the third quarter was 9.57 percent, lower than the 9.62 percent recorded in the same period of 2025 and higher than the 7.40 percent recorded in the fourth quarter of 2025.
Manufacturers, who have struggled with diesel costs and currency volatility, reported higher capacity utilisation and new orders as policy changes took effect.
The first quarter’s strong growth signals tentative momentum for President Tinubu’s reform agenda, though analysts caution the sector remains fragile.
