Nigeria’s manufacturing sector could chart a stronger growth trajectory in 2026 if targeted reforms and macroeconomic stabilisation efforts are fully realised, industry experts have said.
Stakeholders from trade associations, private enterprise think tanks, and commerce bodies emphasised the importance of effective implementation of new tax incentives, consistent fiscal policy, and broader economic stability to boost output and competitiveness. Their insights come as manufacturers and policymakers look beyond recovery toward sustained industrial expansion.
The manufacturing sector has shown signs of modest recovery following headwinds that characterised much of 2024 and 2025, including inflationary pressures, exchange rate volatility, and high production costs.
According to projections by the Manufacturers Association of Nigeria (MAN), real growth of about 3.1 percent and a 10.2 percent contribution to real gross domestic product (GDP) could be achieved in 2026, contingent on enabling conditions and policy execution.
Experts say that the recently implemented Nigeria Tax Act 2025 introduces incentives that could lighten the tax burden on manufacturers and make the investment environment more attractive if properly executed. Macro-economic stability with a steadier naira and moderating inflation was also cited as essential for lowering production costs and improving planning certainty for businesses.
Dr. Oluwasegun Osidipe, Director of Research and Economic Policy at MAN, noted that removing redundant levies and delivering targeted tax incentives can free up liquidity for manufacturers, enabling them to invest in production capacity and workforce expansion.
He also highlighted the need for operationalising key infrastructure projects like the National Single Window (NSW) to streamline trade logistics.
George Onafowokan, Managing Director of Coleman Technical Industries and chairman of MAN’s Ogun State branch, linked the sector’s prospects to favourable macroeconomic trends.
He pointed to improved naira stability and downward inflation trends as creating a more supportive environment for scaling operations. He cautioned, however, that pending policy directives must be finalised to sustain momentum.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), described the overall economic outlook as one of cautious optimism. He said that if reform momentum continues and structural challenges like insecurity and infrastructure deficits are addressed, Nigeria’s economy could enjoy stronger growth with more inclusive expansion by 2026.
Engr. Leye Kupoluyi, President of the Lagos Chamber of Commerce and Industry (LCCI), said 2026 could be the year business begin to feel the benefits of reforms implemented in previous years, particularly if credit flows to the private sector improve and policies support broader industry engagement.
For manufacturers and urban businesses, the proposed emphasis on tax incentives and economic stability could mean reduced cost pressures, better access to credit, and stronger capacity utilisation.
Manufacturers that have struggled under high interest rates and multiple taxation may find a more predictable fiscal environment conducive to investment and expansion. Improved infrastructure and policy certainty could also position Nigeria as a more attractive destination for foreign direct investment in manufacturing.
Consumers and small businesses in urban centres may benefit indirectly from stronger local production as domestic goods replace imports and strengthen supply chains, helping moderate retail prices and improve product availability.
However, experts caution that structural challenges like energy costs, logistics constraints, and security risks must be addressed to fully unlock the sector’s growth potential.
Industry leaders’ projections for Nigeria’s manufacturing sector in 2026 are anchored in pragmatic optimism, with a clear emphasis on policy execution, macroeconomic stability, and tax reform incentives.
For manufacturers, investors, and policymakers, the coming year presents an opportunity to translate reform momentum into tangible growth and industrial resilience.
Sustained collaboration between government and the private sector will be critical to realise these ambitions and drive broader economic development.
