Nigeria could unlock more than ₦40 trillion in manufacturing opportunities by expanding local production, strengthening industrial value chains and improving competitiveness, according to the Nigerian Manufacturing Opportunity Report 2026 released by SEID.
The report, unveiled at the Manufacturers Association of Nigeria (MAN) 54th Annual General Meeting in Lagos, estimates that imports met 64 per cent of Nigeria’s demand for manufactured goods in 2025, representing a $29.4 billion market that domestic producers did not adequately serve.
The findings highlight the scale of the opportunity for manufacturers and investors to reduce import dependence, expand production capacity and capture more value from Nigeria’s domestic market.
Produced by SEID Intel, the market intelligence unit of SEID, the report examines manufacturing opportunities across key subsectors, states, value chains and industrial clusters. It also identifies areas where existing industrial capabilities can be strengthened to drive growth.
According to the report, Nigeria’s manufacturing sector has distinct regional and industrial strengths that could support a more targeted approach to investment and development.
The South-West remains the country’s largest manufacturing zone, while other regions have developed capabilities in food and agro-processing, textiles, chemicals, pharmaceuticals, cement, steel and light manufacturing.
The report argues that industrial development should build on these existing strengths rather than adopt a uniform approach across the country.
Speaking on the findings, Tubosun Akeju, managing partner at SEID, said Nigeria already had the market demand and some of the industrial capabilities needed to build a stronger manufacturing sector.
“The opportunity is to understand where those strengths exist, deepen them and build the competitiveness required to capture more value locally and compete beyond our borders,” he said.
Akeju said the report provides decision-makers with insights into immediate investment opportunities, areas where the country is making progress and measures needed to unlock greater value from manufacturing.
Despite the opportunities, the sector continues to face structural challenges. The report noted that manufacturing’s contribution to Nigeria’s gross domestic product declined from 8.42 per cent in 2023 to 8.05 per cent in 2025, even as the wider economy expanded.
It identified stronger value chains, reliable energy, efficient logistics, improved infrastructure and technical skills as critical requirements for increasing production and competitiveness.
The report also highlighted the importance of expanding manufacturing exports. Nigeria’s manufacturing export intensity remains below the sub-Saharan African average, suggesting significant room to improve the sector’s contribution to regional and global trade.
It said manufacturers would need to improve product quality, increase production scale, reduce costs and deepen local value chains to compete more effectively in international markets.
The report focuses on five major manufacturing subsectors: light manufacturing and packaging; food and agro-processing; textiles, apparel and leather; chemicals and pharmaceuticals; and cement and steel.
It also found that three of the five subsectors account for about 71 per cent of manufacturing output, underscoring their importance to the sector’s overall performance.
Emerging opportunities include gas-linked fertiliser production, where Nigeria’s access to feedstock, production scale and industrial capacity could support greater competitiveness.
The report is designed to guide investment and policy decisions by identifying where manufacturers can expand, investors can enter the market and policymakers can address constraints to industrial growth.
SEID said unlocking the opportunities would require a stronger focus on existing industrial capabilities, improved infrastructure and the conditions needed for Nigerian manufacturers to serve domestic demand and compete in export markets.
