Factory shipments abroad remain sluggish even as overall trade volume increases

Nigeria's export basket has seen a stagnation in the contribution of manufactured goods for four consecutive years, despite a significant rise in the country's total export value, according to the latest figures from the National Bureau of Statistics.

n

The data from the NBS shows that while the total export value increased by 9.93 per cent year-on-year to N85.13 trillion in 2025, manufactured exports stood at N2.5 trillion, accounting for 2.94 per cent of the total exports, which is a decline from 2.96 per cent recorded in 2024.

n

In 2024, total exports surged by 115 per cent year-on-year to N77.44 trillion, with manufactured exports at N2.29 trillion, representing 2.96 per cent of the total exports.

n

The year 2023 saw total exports at N35.96 trillion, with manufactured exports amounting to N778.44 billion, which accounted for 2.16 per cent of the total exports.

n

In 2022, Nigeria recorded total exports of N26.8 trillion, with manufactured exports at N781 billion, representing 2.91 per cent of the total exports.

n

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

n

This indicates a steady decline in the manufacturing sector's contribution to total exports after reaching a significant 5.21 per cent in 2021, despite a consistent rise in total export value over the period.

n

The decline highlights a failure in the government's value-added export policies over the years, with stakeholders in the sector pointing to structural bottlenecks that constrain the manufacturing sector's ability to compete in the international market.

n

Manufacturers have attributed the development to a harsh operating environment that erodes competitiveness, with key stakeholders in the nation's manufacturing sector saying the weak contribution of manufactured goods in the export basket is related to deep structural weaknesses in the economy.

n

They noted that Nigeria has yet to transition from raw and minimally processed exports to value-added production, with the country's long-standing dependence on raw exports hindering the manufacturing sector's growth.

n

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 need for practical reforms.

n

Chairman of MANEG, Mrs Odiri Erewa-Meggison, stated that the country must move beyond policy formulation to effective implementation to unlock export opportunities, noting that Nigeria's challenge is not access to markets but poor execution of trade strategies.

n

According to Erewa-Meggison, "Nigeria does not have a market access problem; we have an execution problem," adding that the African Continental Free Trade Area (AfCFTA) presents a $3.4 trillion opportunity across 1.3 billion people, but access without readiness delivers no value.

n

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, with over 70 per cent of Nigerian food exports being rejected in international markets.

n

About 30 per cent of manufactured exports fail due to poor packaging, labelling, traceability, and certification challenges, according to Erewa-Meggison, who disclosed that many manufacturers operate below capacity due to inadequate access to technical support for export documentation and engagement with global buyers.

n

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.

n

Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, noted that high energy costs, poor infrastructure, and policy inconsistencies have made it difficult for local producers to compete in international markets, with many manufacturers burdened by rising production costs.

n

Ajayi-Kadir stated that "you cannot compete globally when your cost of production is significantly higher than your competitors," adding that this is the reality Nigerian manufacturers face daily.

n

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, noting that "what we are seeing is growth without industrial depth."

n

According to Dr Yusuf, Nigeria's export expansion is still commodity-driven, and until the country scales up value addition, manufacturing will remain insignificant in export performance.

n

Industry operators also blame quality and standardisation challenges, which have further compounded the problem, with a significant proportion of Nigerian exports being rejected in international markets due to poor packaging, labelling, and failure to meet required standards.

n

A senior official at the Nigerian Export Promotion Council (NEPC) stressed that export readiness remains weak among local producers, noting that "access to markets is not the issue; preparedness is," and that many exporters are not meeting the technical requirements needed to succeed globally.

n

Stakeholders argue that Nigeria has not fully leveraged opportunities under the AfCFTA, which offers a vast regional market for manufactured goods, with limited industrial capacity, weak financing structures, and inadequate integration into global value chains being key constraints holding back manufactured exports.

n

Experts agree that reversing the trend will require deliberate policy action, including improved infrastructure, affordable energy, enhanced quality control systems, and targeted export incentives, warning that Nigeria's export growth may continue to rise on paper without the industrial backbone needed for sustainable economic transformation.