Nigeria’s manufacturing sector’s contribution to the Gross Home Product (GDP) grew marginally by two % within the first quarter of 2025, pushed by the nation’s steady overseas trade.
Knowledge from the Nationwide Bureau of Statistics (NBS) confirmed that the manufacturing sector contributed 9.62 % to the GDP in Q1 2025, which was larger than the 7.62 % recorded within the fourth quarter of 2024.
The determine, nevertheless, dropped when in comparison with the 9.76 % recorded within the corresponding quarter of 2024.
A collection of far-reaching coverage reforms by the Central Financial institution of Nigeria (CBN) has diversified the nation’s FX sources to extend greenback inflows and enhance entry for producers and retail customers in latest months. It has boosted producers’ and buyers’ confidence within the Nigerian financial system.
The easing strain from overseas trade (FX) markets within the first quarter of 2025 has signalled a restoration for producers beforehand burdened by currency-induced losses.
BusinessDay survey of sixteen firms throughout six sectors—telecommunications, shopper items, cement, breweries, oil and fuel, and healthcare—revealed a dramatic drop in FX losses, from N951.7 billion in Q1 2024 to N28.7 billion in the identical interval this yr.
The development in FX circumstances has introduced a level of reduction to our price construction,” a senior government at a number one FMCG firm who spoke on situation of anonymity, instructed BusinessDay.
“Whereas challenges stay, particularly with entry to {dollars}, the discount in valuation losses on our dollar-denominated liabilities is important.”
Learn additionally: How CBN reforms ease inflation, stabilise FX, lift reserves to $37.93bn
“The worst of the FX-driven losses for corporates may be behind us if present traits persist,” mentioned Muda Yusuf, CEO of the Centre for the Promotion of Non-public Enterprise (CPPE). “The return of some measure of predictability within the FX market is a constructive growth for steadiness sheet planning and overseas investor sentiment.”
The combination Producers CEOs Confidence Index (MCCI) of the Producers Affiliation of Nigeria (MAN) within the first quarter of 2025 declined however remained above the 50-point threshold.
This means a moderated optimism amongst manufacturing CEOs. “Regardless of a predicted slowdown in enterprise exercise for the primary month of 2025, operators stay reasonably optimistic by the expectations of a extra steady trade charge, halt in rate of interest hikes, minimal decline in vitality costs and the enactment of beneficial Tax Reform Payments by Q1 2025,” the MCCI report said.
The sector recorded a marginal development within the first quarter of 2025. The actual GDP development within the manufacturing sector within the first quarter of 2025 was 1.96 % year-on-year, larger than the identical quarter of 2024 and better than the previous quarter by 0.11% factors and 0.41 factors respectively.
In nominal phrases, the GDP development of the manufacturing sector within the first quarter of 2025 was 42.40 % year-on-year, 35.09 proportion factors larger than the determine recorded within the corresponding interval of 2024 (7.31percent) and 29.25 proportion factors larger than the previous quarter’s determine of 13.14 %.
The contribution of producing to nominal GDP within the first quarter of 2025 was 10.78 %, larger than the determine recorded within the corresponding interval of 2024 at 8.95 % and better than the fourth quarter of 2024 at 9.27 %,” the NBS report said.
