Manufacturing export stagnates despite rising trade value 

By Yinka Kolawole

The contribution of manufactured goods to Nigeria’s export basket has stagnated for four consecutive years despite a sharp rise in the country’s total export value, latest figures from the National Bureau of Statistics (NBS) have shown.

The NBS data indicated that though total export value rose by 9.93 per cent year-on-year (YoY) to N85.13 trillion in 2025, manufactured exports stood at N2.5 trillion, accounting for 2.94 per cent of the total exports, a decline from 2.96 percent recorded in the previous year, 2024.

In 2024, total exports surged by 115 per cent YoY to N77.44 trillion, while manufactured exports stood at N2.29 trillion, representing 2.96 per cent.

Similarly, in 2023, total exports stood at N35.96 trillion, while manufactured exports amounted to N778.44 billion, accounting for 2.16 per cent, while in 2022, Nigeria recorded total exports of N26.8 trillion, with manufactured exports at N781 billion or 2.91 per cent.

However, in 2021, manufactured exports accounted for a relatively higher share of 5.21 per cent, with total exports at N18.91 trillion while manufactured exports stood at N984.56 billion.

This shows that manufacturing contribution to total exports had recorded steady decline after its significant 5.21 percent recorded in 2021. The decline is coming at the backdrop of consistent rise in total export value over the period.

It also indicates a failure in the government’s value added export policies over the years.

Stakeholders in the sector observed that structural bottlenecks have continued to constrain the manufacturing sector’s ability to compete in the international market.

Manufacturers blame structural weaknesses

Manufacturers have attributed the development to a harsh operating environment that continues to erode competitiveness.

Key stakeholders in the nation’s manufacturing sector say the weak contribution of manufactured goods in the export basket is related to deep structural weaknesses in the economy.

They attributed the trend to Nigeria’s long-standing dependence on raw and minimally processed exports, noting that the country has yet to transition to value-added production.

Exporters under the Manufacturers Association of Nigeria Export Promotion Group, MANEG, said the trend highlights deep-rooted challenges in Nigeria’s export ecosystem and underscores the urgent need for practical reforms.

Chairman of MANEG, Mrs Odiri Erewa-Meggison, said the country must move beyond policy formulation to effective implementation to unlock export opportunities.

According to her, Nigeria’s challenge is not access to markets but poor execution of trade strategies.

“Nigeria does not have a market access problem; we have an execution problem. African Continental Free Trade Area (AfCFTA) presents a $3.4 trillion opportunity across 1.3 billion people, but access without readiness delivers no value,” she stated.

Erewa-Meggison, who is also the Corporate and Regulatory Affairs Director at BAT Nigeria, noted that while AfCFTA offers vast opportunities for Nigerian businesses, the country remains largely unprepared to maximise the benefits.

She disclosed that over 70 per cent of Nigerian food exports are rejected in international markets, while about 30 per cent of manufactured exports fail due to poor packaging, labelling, traceability, and certification challenges.

According to her, the high rejection rate reflects weak quality assurance systems, poor logistics infrastructure and inadequate technical expertise across the export value chain.

She added that many manufacturers currently operate below capacity, not because of a lack of ambition, but due to inadequate access to technical support for export documentation, utilisation of AfCFTA tariff benefits and engagement with global buyers.

To address the challenges, Erewa-Meggison proposed reforms anchored on four critical pillars: improved quality standards, efficient logistics systems, access to export financing, and effective domestication of AfCFTA frameworks.

While acknowledging the role of government in creating an enabling environment, she urged manufacturers to take greater responsibility for export readiness by complying with international standards, forming strategic partnerships and leveraging available trade platforms.

According to her, promoting value-added manufacturing is a sustainable pathway to increasing Nigeria’s share of global trade and boosting foreign exchange earnings.

On his part, Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, reiterated that high energy costs, poor infrastructure, and policy inconsistencies have made it increasingly difficult for local producers to compete in international markets.

Ajayi-Kadir noted that many manufacturers are burdened by rising production costs, particularly from energy and logistics.

“You cannot compete globally when your cost of production is significantly higher than your competitors. That is the reality Nigerian manufacturers face daily,” he added.

It signals fundamental imbalance in export structure – CPPE  

Chief Executive Officer of Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, said the development underscores a fundamental imbalance in Nigeria’s export structure.

“What we are seeing is growth without industrial depth. Our export expansion is still commodity-driven, and until we scale up value addition, manufacturing will remain insignificant in export performance,” he said.

Quality, standardisation challenges compound problem

Meanwhile, industry operators also blame quality and standardisation challenges which they said have further compounded the problem.

According to them, a significant proportion of Nigerian exports are rejected in international markets due to poor packaging, labelling, and failure to meet required standards.

A senior official at the Nigerian Export Promotion Council (NEPC) who pleaded anonymity stressed that export readiness remains weak among local producers.

“Access to markets is not the issue; preparedness is. Many exporters are not meeting the technical requirements needed to succeed globally,” the official said.

Stakeholders also argue that Nigeria has not fully leveraged opportunities under the AfCFTA, which offers a vast regional market for manufactured goods.

Beyond market access, experts cite limited industrial capacity, weak financing structures, and inadequate integration into global value chains as key constraints holding back manufactured exports.

They, however, agree that reversing the trend will require deliberate policy action, including improved infrastructure, affordable energy, enhanced quality control systems, and targeted export incentives.

Until then, analysts warn, Nigeria’s export growth may continue to rise on paper, but without the industrial backbone needed for sustainable economic transformation.

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