Nigeria: Power Outages, Rising Costs Slow Manufacturing Growth - NESG

What the report says

Nigeria’s manufacturing sector is being held back by frequent electricity outages, higher production expenses and limited access to credit, according to the Nigerian Economic Summit Group’s October 2026 Business Confidence Monitor, as reported by Vanguard and distributed by AllAfrica. The update says companies are struggling to keep operations steady amid broader infrastructure problems and rising operating costs.

The report shows manufacturing still remained in expansion territory in October, but performance weakened. The sector’s current business performance index fell to 107.3 points from 108.4 in September and 111.3 a year earlier, suggesting slower activity. NESG said the main pressures included unreliable power supply, shortages of raw materials, high rents, scarce credit and other infrastructure gaps.

The effect varied across subsectors. Textile, apparel and footwear moved into contraction, while cement also stayed below expansion levels. Food, beverage and tobacco was the only major manufacturing subsector to improve and remain in growth territory. NESG said unstable electricity is especially costly for manufacturers because firms often have to rely on alternative power sources.

At the wider economy level, the business performance index also eased, though it stayed in expansion. NESG reported that business expectations improved for the next one to three months, with optimism linked to expected year-end demand and campaign-related activity.