Nigeria’s manufacturing sector recorded a sharp slowdown in September 2026, with its business performance index falling about 10 per cent amid a contraction in cement production and weaker activity across several other industries, the Nigerian Economic Summit Group (NESG) has reported.
The group’s Business Confidence Monitor showed the manufacturing Current Business Performance Index declining to 108.4 points from 120.4 points in August. Persistent cost pressures, tight credit conditions and operational difficulties weighed on the sector.
Despite the manufacturing setback, overall business activity continued to expand. The composite index rose to 117.8 points from 112.7 points in August and 107.9 points in September 2025. Trade led the gains, with its index climbing sharply to 128.5 points from 112.0 points the previous month. Agriculture also strengthened, rising to 117.7 points from 110.5 points in August.
Within manufacturing, performance was mixed. Food, Beverage and Tobacco remained in expansion but at a slower pace, while Textile, Apparel and Footwear improved. Cement moved into contraction. Activity also contracted in Chemical and Pharmaceutical Products, Plastic and Rubber Products, Wood and Wood Products, Non-Metallic Products, Basic Metal, Iron and Steel, and Motor Vehicles and Assembly.
Pulp, Paper and Paper Products held steady in expansion territory, Electrical and Electronics recorded stronger activity, and Other Manufacturing hovered near the 100-point threshold that separates expansion from contraction.
NESG identified energy shortages, inadequate raw-material supplies, high rental costs, tight credit conditions and infrastructure deficiencies as major constraints. These factors raised operating costs and discouraged new investment.
In agriculture, crop production and agro-allied activities expanded more strongly, while livestock slowed. Forestry and fishing slipped into contraction. The sector continued to face inadequate financing, power outages, insecurity and infrastructure bottlenecks.
Services activity moderated, with its index falling to 107.7 points from 112.4 points in August, though it remained in expansion.
Stronger trade and agricultural performance helped support the broader economy even as cost pressures and operational challenges continued to hold back manufacturing, according to the NESG findings.
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