The Manufacturers Association of Nigeria (MAN) has expressed alarm over the shrinking contribution of the industrial sector to Nigeria’s Gross Domestic Product (GDP).
Responding to the first quarter (Q1) 2025 GDP growth rate of 3.13%, MAN’s Director-General, Segun Ajayi-Kadir, noted that while the growth indicates potential economic recovery, the industrial sector’s declining role remains a critical issue.
Insights from GDP Rebasing
Ajayi-Kadir highlighted that the rebased GDP, driven by improved data from agriculture, services, and the informal sector, reveals a shift toward low-productivity activities. The industrial sector’s GDP share dropped from 27.65% in the 2010 base year to 21.08% in the 2019 rebased structure.
“While the rebasing exercise shows a more diversified economy, it also exposes the underperformance of industry, particularly manufacturing, which should be the backbone of Nigeria’s economic transformation,” he said.
Manufacturing Sector Challenges
The manufacturing sector has contracted, with an average annual growth rate of -0.76% from 2019 to 2024, signaling a real-term decline.
Ajayi-Kadir emphasized that the rebased GDP, while statistically larger, does not reflect a more productive or industrialized economy, with key manufacturing sub-sectors underperforming due to structural weaknesses.
Urgent Call for Policy Reform
MAN urged the federal government to prioritize manufacturing and industrialization to bolster economic fundamentals and leverage the rebased GDP’s gains.
Ajayi-Kadir called for policies to enhance domestic production, improve competitiveness, and attract investment, warning that without intervention, Nigeria’s growth risks remaining unsustainable and superficial.
