NIGERIA’s latest rebased gross domestic product (GDP) figures indicate that the manufacturing sector is underperforming, according to the director-general of Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir.
He is urging the federal government to prioritise the sector to reflect the real economic situation and gains of the rebased GDP.
Ajayi-Kadir made the call in Lagos on Tuesday, July 29, while reacting to the recently released rebased GDP figure.
He pointed out that the rebased GDP, mainly driven by improved data from agriculture, services, and the informal sector, should not be mistaken for real progress.
“The rebasing confirms that Nigeria’s economy may be statistically larger, but it is not more productive, nor more industrialised.
“While the rebasing exercise reveals a more diversified economy, it also exposes the underperformance of industry, particularly manufacturing, a sector which should be the backbone of Nigeria’s economic transformation,” Ajayi-Kadir said.
On July 22, the National Bureau of Statistics released the rebased GDP data, stating that it grew by 3.13 per cent year-on-year in real terms in the first quarter of this year from 2.27 per cent growth in the same period of 2024, The ICIR reported.
Ajayi-Kadir noted that despite the upward revision, Nigeria’s real GDP growth remains weak, averaging only 1.95 per cent between 2020 and 2024.
He described this as a sign of “underlying fragility of Nigeria’s productive base and the capacity of the economy to deliver sustainable and inclusive development.”
He further said that the rebased structure shows the industry’s share of the GDP declined from 27.65 per cent in the 2010 base year to 21.08 per cent under the new 2019 base year.
“This marks a structural shift away from production toward low-productivity service activities,” he said.
According to Ajayi-Kadir, the government must treat the rebased GDP not as a sign of success, but as “a strong call for structural industrial reforms.”
“Nigeria must re-industrialise to achieve inclusive growth, build export capacity, and reduce dependence on primary commodities and informal activities.”
The Director-General also urged policymakers to prioritise manufacturing in financing, infrastructure, and policy design.
“Without a strong industrial base, GDP expansion may just become a hollow statistic.
“The upward revision of Nigeria’s GDP to $243 billion could lift investors’ confidence and improve headline macroeconomic ratios such as the debt-to-GDP ratio,” Ajayi-Kadir said.
He, however, noted that confidence in the economy is anchored not just on size, but on structural resilience, depth of industrial capacity, and productivity growth.
He called for sustained implementation of industry-centric initiatives, such as the Industrial Revolution Working Group, improved infrastructure, and greater access to long-term finance to revitalise the sector.
He believes this is the only way for the GDP growth to translate into poverty reduction, job creation, and macroeconomic stability.
Ajayi-Kadir also called for a manufacturing-led growth strategy, including targeted support for critical sub-sectors like textiles and vehicle assembly.