Nigeria’s Manufacturing Activity Drops 10% Amid Cement Sector Decline

Nigeria’s manufacturing activity saw a significant drop of about 10% in September 2026, according to the Nigerian Economic Summit Group (NESG). This decline was mainly driven by a contraction in the cement sector and weaker performance in various other industries.

The NESG’s Business Confidence Monitor reported that the Current Business Performance Index (CBPI) for manufacturing fell to 108.4 points in September, down from 120.4 points in August. This decrease comes amid ongoing cost pressures, limited access to credit, and various operational challenges.

Despite the setback in manufacturing, overall business activity in Nigeria continued to grow. The composite CBPI rose to 117.8 points from 112.7 points in August, showing expansion across all major sectors, with trade performing particularly well.

While the Food, Beverage, and Tobacco subsector remained in a growth phase, it showed slower activity. In contrast, the Textile, Apparel, and Footwear subsector performed better than the previous month. However, the cement sector moved into contraction, alongside declines in Chemical and Pharmaceutical Products, Plastic and Rubber Products, and several others.

The NESG highlighted several challenges facing manufacturers, including energy shortages, lack of raw materials, high rental costs, and poor infrastructure. These issues have increased operating costs and made it harder for businesses to attract new investments.

In agriculture, the CBPI improved to 117.7 points in September, reflecting stronger crop production and agro-allied activities, although livestock activities slowed down. The sector still grapples with inadequate financing and power outages.

Meanwhile, the services sector also experienced a slowdown, with its index dropping to 107.7 points, although it remained in the growth zone. Overall, while trade and agriculture are supporting the economy, rising costs and operational issues continue to challenge the manufacturing sector.