Nigeria: Manufacturing leads industrial growth as NESG warns of regional policy impacts

The Nigerian Economic Summit Group (NESG) has highlighted the critical role of Nigeria’s domestic policies in shaping economic trends across the African continent. In a recent policy dialogue in Abuja, NESG CEO Dr. Tayo Aduloju warned that Nigeria’s strategic decisions regarding monetary policy, fiscal reforms, and regulatory frameworks have significant ripple effects on regional stability and investor confidence within blocs like ECOWAS and the African Continental Free Trade Area (AfCFTA).

Complementing these policy concerns, a new NESG report titled ‘H1-2026 State of the Economy’ reveals that the manufacturing sector has become the primary driver of Nigeria’s industrial output and employment. Manufacturing’s share of industrial output rose to 50.1 percent in the first quarter of 2026, up from 28.2 percent in 2010. The sector also remains the largest industrial employer, accounting for 76.5 percent of total industrial employment in 2023.

The report notes that while manufacturing saw subdued performance throughout 2024 and 2025, growth improved markedly in the first quarter of 2026. The NESG emphasized the necessity of manufacturing-led structural transformation to ensure long-term economic progress and inclusion.