Nigeria’s manufacturing sector recorded a sharp trade imbalance in the first half of 2025, as imports of manufactured goods exceeded exports by more than N14 trillion. Fresh data from the National Bureau of Statistics (NBS) highlight the scale of the country’s industrial challenges and reinforce calls for urgent measures to strengthen local production.
According to the NBS, manufactured imports between January and June were valued at N15.39 trillion, compared to exports of just N1.09 trillion. This left the sector with a deficit of N14.3 trillion in six months, underscoring Nigeria’s heavy reliance on foreign products.
Exports saw some recovery in the second quarter, rising to N803.81 billion—an increase of 173 per cent over the first quarter and 67.17 per cent year-on-year. However, analysts say the rebound is too small to offset the flood of imports.
The Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, described the figures as a troubling confirmation of industry concerns. “This deficit is a clear indication that domestic manufacturing is still struggling, and more needs to be done to close the gap,” he said.
Similarly, the President of the Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa, linked the widening deficit to Nigeria’s weak production base. “The N14 trillion deficit reflects the imbalance in raw materials. Manufacturers are forced to import inputs because local supplies are inadequate,” he explained.
Stakeholders warn that the growing gap adds pressure to the foreign exchange market, weakens the naira, and undermines the manufacturing sector’s role in driving economic growth. They point to longstanding challenges such as high energy costs, insufficient raw materials, weak infrastructure, and inconsistent policies.
Ajayi-Kadir noted that the problem is worsened by government procurement patterns that favour imports. He called for stricter implementation of the Nigeria First initiative, which requires ministries, departments, and agencies to prioritise local products. “If government contracts shift toward domestic industries, the deficit could narrow significantly,” he said. He also urged higher tariffs on imported products where local alternatives exist.
Energy costs remain another major burden, with some manufacturers spending up to 40 per cent of operating expenses on power due to unreliable grid supply. Idahosa highlighted examples of industrial estates in Lagos, Imo, Abia, and Edo States that now rely on independent power projects. “Some estates are signing agreements with private producers for steady electricity. That is where progress is being made,” he said, urging government to fast-track licences for independent producers.
Beyond government intervention, industry leaders stressed that manufacturers must take the lead. “Policy by itself will not solve the problem,” Idahosa said. “Manufacturers must leverage policy, pool resources, and invest in solutions such as renewable energy, raw materials, and logistics to become competitive.”
Both MAN and LCCI agree that reversing the deficit will require a multi-pronged approach: reviving raw material industries such as cotton, palm oil, and petrochemicals; reducing energy costs through private power generation; improving export intelligence; and raising product standards to meet global requirements.
Ajayi-Kadir concluded that while the deficit highlights structural weaknesses, it also signals an opportunity. “With the right policies and decisive action from both government and the private sector, we can begin to close the gap and revive manufacturing,” he said.
