By Yinka kolawole
Nigeria’s manufacturing sector may struggle to sustain a recovery unless persistent cost pressures are addressed, analysts have warned, despite tentative signs that business activity is beginning to stabilise.
Although the Purchasing Managers’ Index (PMI) for manufacturing edged up to 50.10 in June from 49.6 in May, experts say the marginal improvement masks deeper structural challenges, including soaring energy costs, high interest rates and weak consumer demand, which continue to weigh heavily on production and investment.
The latest reading suggests manufacturing activity has only just returned to expansion territory after months of weakness, following contractions in April and May that reversed the strong growth recorded between September 2025 and March 2026.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, attributed the sector’s fragile performance largely to escalating operating costs, particularly energy.
