Manufacturing sector rebounds as contribution to GDP hits 9.57% in Q1

Nigeria’s manufacturing sector contributed 9.57% to the country’s real Gross Domestic Product in the first quarter of 2026.

This is according to the latest data released by the National Bureau of Statistics (NBS).

The latest figures represent a slight decline from the 9.62% contribution recorded in the corresponding quarter of 2025, but a significant improvement over the 7.40% posted in the fourth quarter of 2025.

What the data is saying

The NBS reported that the manufacturing sector recorded stronger year-on-year and quarter-on-quarter growth during the first quarter of 2026.

• Real GDP growth in the manufacturing sector stood at 3.29% year-on-year in Q1 2026, surpassing the corresponding quarter of 2025 and the preceding quarter by 1.60 percentage points and 2.17 percentage points respectively.
• Quarter-on-quarter growth in the sector was estimated at 3.59%, indicating gradual recovery in industrial activity.
• Nominal GDP growth in manufacturing stood at 10.22% year-on-year in Q1 2026, compared to 5.80% recorded in the preceding quarter.

The NBS stated:

• “Real GDP growth in the manufacturing sector in the first quarter of 2026 was 3.29% (year-on-year), higher than the same quarter of 2025 and higher than the preceding quarter by 1.60 percentage points and 2.17 percentage points respectively.” 
• “The growth rate of the sector on a quarter-on-quarter basis stood at 3.59%.” 

The report also showed that manufacturing contributed 10.08% to nominal GDP in Q1 2026, compared to 10.78% in the corresponding quarter of 2025 and 8.34% in Q4 2025.

More Insights

The improved quarter-on-quarter performance can be traced to increased activities across consumer goods production, cement manufacturing, food processing, industrial materials, and construction-related industries.

• The latest figures come after the manufacturing sector contributed 8.05% to Nigeria’s real GDP in 2025, lower than the 8.24% recorded in 2024.
• Quarter-on-quarter nominal growth in the sector was estimated at 9.07% during Q1 2026, indicating improving production activity.

What you should know 

The manufacturing sector also maintained strong tax contributions, underscoring its growing importance to government revenue generation and formal economic activity.

• According to NBS data, the sector generated N286.95 billion in Value Added Tax (VAT) revenue in Q1 2025, increasing to N297.68 billion in Q2.
• VAT contributions moderated slightly to N290.79 billion in Q3 before rising again to N292.12 billion in Q4 2025.
• In total, the manufacturing sector contributed N1.17 trillion in VAT revenue in 2025, a sharp increase from the N803.53 billion recorded in 2024.

However, manufacturers continue to call for stronger government support to address structural challenges, including high electricity costs, logistics bottlenecks, insecurity, exchange rate instability, multiple taxation, and rising production expenses.

Nigeria’s economy recorded a real Gross Domestic Product (GDP) growth of 3.89% year-on-year in the first quarter of 2026.

In nominal terms, aggregate GDP at basic prices rose to N110.79 trillion in Q1 2026 from N94.05 trillion in Q1 2025.

Nigeria’s manufacturing sector contributed 9.57% to the country’s real Gross Domestic Product in the first quarter of 2026.

This is according to the latest data released by the National Bureau of Statistics (NBS).

The latest figures represent a slight decline from the 9.62% contribution recorded in the corresponding quarter of 2025, but a significant improvement over the 7.40% posted in the fourth quarter of 2025.

What the data is saying

The NBS reported that the manufacturing sector recorded stronger year-on-year and quarter-on-quarter growth during the first quarter of 2026.

• Real GDP growth in the manufacturing sector stood at 3.29% year-on-year in Q1 2026, surpassing the corresponding quarter of 2025 and the preceding quarter by 1.60 percentage points and 2.17 percentage points respectively.
• Quarter-on-quarter growth in the sector was estimated at 3.59%, indicating gradual recovery in industrial activity.
• Nominal GDP growth in manufacturing stood at 10.22% year-on-year in Q1 2026, compared to 5.80% recorded in the preceding quarter.

The NBS stated:

• “Real GDP growth in the manufacturing sector in the first quarter of 2026 was 3.29% (year-on-year), higher than the same quarter of 2025 and higher than the preceding quarter by 1.60 percentage points and 2.17 percentage points respectively.” 
• “The growth rate of the sector on a quarter-on-quarter basis stood at 3.59%.” 

The report also showed that manufacturing contributed 10.08% to nominal GDP in Q1 2026, compared to 10.78% in the corresponding quarter of 2025 and 8.34% in Q4 2025.

More Insights

The improved quarter-on-quarter performance can be traced to increased activities across consumer goods production, cement manufacturing, food processing, industrial materials, and construction-related industries.

• The latest figures come after the manufacturing sector contributed 8.05% to Nigeria’s real GDP in 2025, lower than the 8.24% recorded in 2024.
• Quarter-on-quarter nominal growth in the sector was estimated at 9.07% during Q1 2026, indicating improving production activity.

What you should know 

The manufacturing sector also maintained strong tax contributions, underscoring its growing importance to government revenue generation and formal economic activity.

• According to NBS data, the sector generated N286.95 billion in Value Added Tax (VAT) revenue in Q1 2025, increasing to N297.68 billion in Q2.
• VAT contributions moderated slightly to N290.79 billion in Q3 before rising again to N292.12 billion in Q4 2025.
• In total, the manufacturing sector contributed N1.17 trillion in VAT revenue in 2025, a sharp increase from the N803.53 billion recorded in 2024.

However, manufacturers continue to call for stronger government support to address structural challenges, including high electricity costs, logistics bottlenecks, insecurity, exchange rate instability, multiple taxation, and rising production expenses.

Nigeria’s economy recorded a real Gross Domestic Product (GDP) growth of 3.89% year-on-year in the first quarter of 2026.

In nominal terms, aggregate GDP at basic prices rose to N110.79 trillion in Q1 2026 from N94.05 trillion in Q1 2025.