Nigeria manufacturing deficit hits N14tn in H1 2025 as imports surge, exposing weak production capacity and deepening industrial crisis

Between January and June, imports reached N15.39tn while exports amounted to just N1.09tn. Although exports rebounded in the second quarter—rising 173 per cent from Q1 to N803.81bn—the surge was not enough to offset the flood of foreign products.

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The Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, described the imbalance as troubling. “This deficit is simply a confirmation that domestic manufacturing is still struggling, and more needs to be done to mitigate the widening gap,” he said.

The President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa, said the figures expose the erosion of Nigeria’s production base.

“Manufacturers are increasingly dependent on imports because there are insufficient local supplies of raw materials,” he explained.

Stakeholders argue the deficit fuels currency pressures, worsens naira depreciation, and undermines industrial growth. Chronic weaknesses such as high energy costs, lack of raw materials, weak export infrastructure, and inconsistent policies were identified as root causes.

Ajayi-Kadir noted that even government procurement patterns contribute to the gap. “This also has to do with heavy purchases for government contracts and infrastructure projects. Domestic production is still low, and our inability to compete has continued to constrain exports,” he said.

Industry leaders stressed that energy remains a crushing burden, with some manufacturers spending up to 40 per cent of their operating costs on power. Unreliable electricity supply has forced many factories to rely on diesel generators.

Idahosa pointed to recent reforms that allow states and private firms to generate and distribute electricity. He cited industrial estates in Lagos, Imo, Abia, and Edo States already adopting independent power arrangements as examples of progress.

Both MAN and LCCI leaders called for stronger support for local industries through procurement policies, higher tariffs on imports with domestic substitutes, and better export intelligence.

Ajayi-Kadir stressed that Nigerian goods must become competitive abroad. “It is not just about exporting; your products must meet international standards and compete on price,” he said.

Idahosa urged the private sector to take greater initiative. “Government policy is policy. It is Nigerians who must use that policy to create value.

By itself, policy will not do anything,” he argued, encouraging manufacturers to pool resources for independent power, raw materials, and logistics.

Closing Nigeria’s manufacturing deficit, stakeholders agree, will require reviving local input industries, reducing energy costs, and faithfully implementing the Nigeria First procurement policy.

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Ajayi-Kadir concluded that the figures highlight both a crisis and a path forward. “The deficit confirms that domestic manufacturing is still struggling. But with the right policies and private sector action, we can begin to close the gap,” he said.