Nigerian manufacturers’ confidence rebounds in Q2 2026, driven by policy hopes

Nigerian manufacturers’ confidence rose in the second quarter of 2026, with the Manufacturers’ Association of Nigeria’s CEOs Confidence Index climbing to 52.1—up 3.4 points from 48.7 in Q1—as executives cited a brighter commercial outlook thanks to the Nigeria Tax Act 2025, the Nigeria Industrial Policy and the ‘Nigeria First’ Policy. The index reflects expectations rather than current conditions, and manufacturers remain optimistic for Q3, projecting business condition at 55.6, employment at 55.2 and production levels at 63.0, all above the 50‑point benchmark.

Confidence varied widely across sectors. Motor Vehicle and Miscellaneous Assembly led at 69.4 (up from 41.3), followed by Wood and Wood Products at 66.7 and Textile, Apparel and Footwear at 58.3. At the bottom were Pulp, Paper, Printing, Publishing and Packaging at 38.6, Electrical and Electronics at 42.5 and Chemicals and Pharmaceuticals at 47.7.

Despite the upbeat sentiment, manufacturers flagged limited access to finance as their biggest challenge, noting the Monetary Policy Rate stands at 26.5%. MAN urged the Central Bank of Nigeria to cut the MPR below 20% and to prioritize foreign exchange for importers of machinery, spare parts and production materials. The group also pointed out that sustained industrial growth hinges on fixing electricity supply, a concern repeatedly raised by industrialists such as Aliko Dangote.

Will improved manufacturer confidence translate into more jobs, higher local production and lower prices for made‑in‑Nigeria goods, or will persistent power shortages and high borrowing costs keep the gains fragile?

SOURCE: https://nairametrics.com/2026/08/06/man-confidence-index-recovers-high-interest-rates-cloud-outlook/