Nigeria’s ambition to expand domestic manufacturing and capture more than N40 trillion in untapped industrial opportunities could be undermined by heavy dependence on imported raw materials and intermediate inputs, industry stakeholders have warned.
The concern follows findings in the Nigerian Manufacturing Opportunity Report 2026, published by Lagos-based marketing communications and market intelligence firm SEID, which estimates that imports supplied 64 per cent of Nigeria’s demand for manufactured goods in 2025.
The report valued the unmet opportunity for domestic producers at $29.4 billion, describing it as a potential market for businesses able to expand local production and strengthen industrial value chains.
However, manufacturers say Nigeria’s ability to replace imported finished goods will depend partly on developing a reliable domestic supply of the materials required to produce them.
Nigeria imported raw materials worth approximately N3.53 trillion in the first half of 2025, including about N1.72 trillion from Asia, highlighting the manufacturing sector’s exposure to foreign supply chains.
National Bureau of Statistics data showed that raw-material imports declined by 4.5 per cent to N3.37 trillion in the first half of 2026. Over the same period, exports of raw materials more than doubled to N3.84 trillion, a year-on-year increase of 105.9 per cent.
The figures point to a mismatch between the export of raw commodities and manufacturers’ continued reliance on imported industrial inputs.
President of the Manufacturers Association of Nigeria, Otunba Francis Meshioye, said expanding finished-goods production without increasing local supplies of raw materials and intermediate products would limit value addition within the economy.
He also cited high energy costs, foreign-exchange exposure, financing difficulties, logistics constraints, multiple taxation and weak consumer demand as factors increasing manufacturers’ operating costs.
Meshioye called for stronger implementation of industrial policies, with measurable targets to increase local content, lower regulatory costs and improve competitiveness.
He added that Nigeria’s ability to benefit from the African Continental Free Trade Area would depend on whether local manufacturers could compete on price, quality and delivery.
The figures highlight the challenge facing Nigeria’s industrial expansion: converting strong domestic demand into local production will require not only more manufacturing capacity but also a stronger domestic base for supplying industrial inputs.
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