Nigeria’s economy may be growing on paper, but the country’s factories are telling a different story, with the industrial sector recording a sharp slowdown in the second quarter of 2026, the Manufacturers Association of Nigeria (MAN) has warned.

The warning followed the latest Gross Domestic Product figures released by the National Bureau of Statistics (NBS), which showed overall economic growth accelerating from 3.89 per cent in the first quarter to 4.43 per cent in Q2.

But behind the headline improvement was a significant weakening of industrial activity. MAN said industrial growth fell to 3.96 per cent in Q2 2026, almost half the 7.46 per cent recorded during the corresponding quarter of 2025.

The association’s Director-General, Segun Ajayi-Kadir, identified the electricity, gas, steam and air-conditioning supply segment as one of the major drags on industrial performance, after the sector contracted by 10.63 per cent during the quarter.

Manufacturing, traditionally regarded as a critical driver of productive economic activity, also lost ground in its contribution to national output. Its share of real GDP declined from 9.57 per cent in Q1 2026 to 7.72 per cent in the second quarter.

The manufacturing sector’s own growth rate offered little relief, slipping marginally from 3.29 per cent in the first quarter to 3.24 per cent in Q2. For MAN, the figures point to persistent constraints confronting businesses that produce goods locally.

Ajayi-Kadir argued that the widening gap between overall GDP growth and industrial performance should concern policymakers, particularly because a stronger economy cannot depend indefinitely on sectors with limited capacity to expand domestic production.

Services dominated economic activity during the quarter, accounting for 56.62 per cent of GDP, while trade contributed 17.93 per cent. MAN, however, cautioned that such an economic structure could leave Nigeria overly dependent on consumption-driven activities and extractive sectors.

The manufacturers said Nigeria would need to strengthen its productive base if the current growth trajectory is to translate into stronger exports, broader employment and sustainable economic expansion, warning that headline GDP growth means little if factories and other productive sectors continue to lose momentum.