Manufacturing’s GDP contribution dips to 8.05% in real terms as output lags

Nigeria’s manufacturing sector accounted for 8.05% of real GDP in 2025, down from 8.24% recorded in 2024.

This was according to the National Bureau of Statistics’ Nigerian Gross Domestic Product (GDP) Report Q4 2025.

The decline in contribution comes despite a slight improvement in annual real growth, underscoring the sector’s weak structural momentum within the broader economy.

MoreStories

Finance and insurance sector grows by 14.54% in 2025 – NBS

February 27, 2026

Nigeria’s GDP rate grew by 4.07% in Q4 2025

February 27, 2026

The sector comprises thirteen sub-activities, including oil refining, cement, food, beverages and tobacco, textiles, chemicals and pharmaceuticals, basic metals, motor vehicles and other manufacturing segments

**What the report says **

Data from the report show that real GDP growth in manufacturing stood at 1.13% year-on-year in Q4 2025.

This was lower than the same quarter of 2024 and also lower than the preceding quarter. On a quarter-on-quarter basis, growth was 9.01%.

For the full year, real growth in the sector was 1.41% in 2025, marginally higher than the 1.20% recorded in 2024. However, the modest growth was insufficient to prevent a drop in its overall share of the economy.

Also, manufacturing contributed 7.40% to GDP in Q4 2025, lower than the 7.62% recorded in Q4 2024 and below the third quarter of 2025.

This indicates that even as the broader economy expanded by 4.07% in real terms in Q4 2025, manufacturing lagged behind other growth drivers.

The report read, “_Real GDP growth in the manufacturing sector in the fourth quarter of 2025 was 1.13% (year-on-year), lower than the same quarter of 2024 and lower than the preceding quarter by 0.15% points and 0.13% points, respectively. The growth rate of the sector on a quarter-on-quarter basis stood at 9.01%. Overall, the sector grew by 1.41% in 2025, higher than the 1.20% recorded in 2024. The Real contribution to GDP in the fourth quarter of 2025 was 7.40%, lower than the 7.62% recorded in the fourth quarter of 2024 and the third quarter of 2025. In total, the sector contributed 8.05% in 2025, lower than the 8.24% contributed in 2024.” _

**Nominal growth fails to lift GDP share **

In nominal terms, manufacturing grew by 12.96% in 2025, up from 10.84% in 2024. In Q4 2025, nominal growth stood at 5.80% year-on-year, significantly lower than the 13.14% recorded in Q4 2024.

Despite stronger nominal expansion, the sector’s share of nominal GDP also declined on an annual basis. Manufacturing contributed 8.46% to nominal GDP in 2025, compared to 8.85% in 2024.

In Q4 2025, its nominal contribution was 8.34%, lower than the 9.27% recorded in the corresponding quarter of 2024, but slightly higher than the 8.06% posted in Q3 2025.

The divergence between nominal and real performance suggests that price adjustments may have supported value growth more than actual increases in production volumes.

**What you should know **

Nairametrics earlier reported that Nigeria’s economy grew by 4.07% year-on-year in real terms in the fourth quarter (Q4) of 2025.

• This was according to the latest Gross Domestic Product (GDP) report released by the National Bureau of Statistics (NBS) on Friday.
• The growth rate represents an improvement from the 3.76% recorded in the corresponding period of 2024, signalling a stronger year-end performance.

Add Nairametrics on Google News

Follow us for Breaking News and Market Intelligence.