​Persistent power outages, escalating production costs, and constrained access to credit have moderated growth across Nigeria’s manufacturing sector, according to the October 2026 Business Confidence Monitor released by the Nigerian Economic Summit Group in Abuja.
​The report, presented during a press briefing at 10:00 AM on Wednesday, November 4, 2026, at the NESG Research Centre in Abuja by Senior Research Economist Dr. Olusegun Omisakin alongside private sector representatives, revealed a noticeable loss of operational momentum across industrial hubs.
​Data from the monthly survey showed that Nigeria’s overall composite Current Business Performance Index dropped to 115.4 points in October 2026 from a record 117.8 points in September 2026.
Although the reading remained above the 100-point threshold separating expansion from contraction, and outperformed the 111.3 points recorded in October 2025, the month-on-month deceleration underscores the mounting operational pressures facing local factories.
​The slowdown hit subsectors unevenly across the industrial landscape. Performance in the Textile, Apparel, and Footwear segment plunged sharply into contraction territory at 99.7 points in October from 127.5 points in September.
The Cement subsector remained trapped in contraction at 94.5 points, leaving Food, Beverage, and Tobacco as the lone major manufacturing subsector to record improved performance and sustain expansion during the month.
​Presenting the diagnostic metrics, NESG lead analysts pointed to persistent structural bottlenecks as the primary drivers of the downturn. The group’s Cost of Doing Business Index stood at 45.2 points, while the Producer Prices Index recorded 65.5 points, both reflecting severe ongoing cost pressures as values below 100 indicate widespread stress.
​Incessant national grid collapse and irregular power supply have forced manufacturers to rely heavily on expensive off-grid diesel and gas generators, inflating production costs, compressing operational margins, and diminishing export competitiveness under regional trade frameworks.
Compounding these energy deficits are high commercial bank lending rates, stringent credit conditions, skyrocketing commercial rent, and transport logistics friction, which together severely limit capital allocation for raw materials and essential factory upgrades.
​Addressing journalists at the briefing, NESG Chief Economist Dr. Olusegun Omisakin stated that while overall private sector expansion has persisted for five consecutive months, manufacturing capacity utilization will remain under severe pressure without targeted structural policy interventions.
Industry spokespersons at the venue urged federal policymakers to establish dedicated industrial power corridors, unlock concessional credit facilities through development finance institutions, and introduce commercial rent stabilization measures to protect domestic production heading into the final quarter of the year.
