Nigeria’s latest economic growth figures do not adequately reflect the challenges confronting businesses and households, as manufacturers warn of weakening industrial activity while former Ogun State governor, Otunba Gbenga Daniel, links economic prosperity directly to national security.
The concerns followed the National Bureau of Statistics’ report showing that Nigeria’s real Gross Domestic Product grew by 4.43 per cent year-on-year in the second quarter of 2026, compared with 3.89 per cent in the first quarter and 4.23 per cent in Q2 2025.
Reacting to the figures, the Manufacturers Association of Nigeria said the headline growth rate was being driven largely by services, while the productive sectors of the economy continued to face serious structural difficulties.
MAN Director-General, Segun Ajayi-Kadir, said services accounted for 56.62 per cent of GDP during the quarter, compared with 17.23 per cent for the industrial sector.
He described the performance of the industrial sector as particularly worrying, noting that its growth dropped from 7.46 per cent in Q2 2025 to 3.96 per cent in the latest quarter.
According to him, the decline was driven significantly by the electricity, gas, steam and air-conditioning supply segment, which contracted by 10.63 per cent.
Manufacturing also recorded a decline in its contribution to real GDP, falling from 9.57 per cent in Q1 2026 to 7.72 per cent in Q2. Its real growth eased slightly from 3.29 per cent to 3.24 per cent during the same period.
Ajayi-Kadir attributed the pressure on manufacturers to high operating costs, exchange-rate instability, expensive credit and rising electricity tariffs.
He warned that an economy increasingly dependent on services and extractive activities could struggle to build the productive capacity required to create jobs, strengthen foreign exchange earnings and achieve sustainable growth.
He said Nigeria risked recording impressive GDP figures without corresponding improvements in living standards if manufacturing and other productive sectors continued to lose ground.
MAN warned that the trend could worsen unemployment, inflationary pressures and foreign exchange vulnerability while weakening the country’s industrial and technological capacity.
The association called for urgent government intervention in electricity supply, industrial financing, foreign exchange access and local procurement.
Among its proposals are direct power purchase arrangements for industrial clusters, matching grants for manufacturers investing in solar and battery systems, credit guarantees to reduce lending costs and a dedicated foreign exchange window for importing raw materials and machinery.
MAN also advocated stronger enforcement of local procurement rules, incentives for vehicle assembly, tax relief for domestic supply chains and the implementation of a comprehensive industrial policy.
Ajayi-Kadir said the country needed to shift decisively from consumption-led growth to production-driven expansion, arguing that manufacturing must become a stronger pillar of the economy.
Meanwhile, Daniel said the performance of the economy should ultimately be judged by the conditions under which Nigerians live and work rather than GDP figures alone.
Speaking at the 7th Annual Lecture of Freedom Online in Lagos, the senator representing Ogun East said economic development could not be separated from security.
Daniel said the latest GDP figures, including improvements recorded in agriculture and services, were positive developments but did not necessarily capture the difficulties faced by ordinary Nigerians.
He argued that genuine economic progress should be reflected in people’s ability to find decent employment, access farms safely, operate businesses profitably and invest without fear.
The former governor asked whether young Nigerians could find sustainable jobs, farmers could reach their farms safely, manufacturers could produce competitively and small businesses could withstand the rising cost of electricity and transportation.
Daniel described security as an important component of economic infrastructure, rather than an issue that should be left solely to the military, police and other security agencies.
He noted that insecurity directly affects food production because farmers who cannot safely access their land are unable to produce at full capacity. He added that insecurity along transportation routes also raises the cost of moving goods and ultimately increases prices.
According to him, excessive security costs can further undermine business competitiveness, while persistent insecurity can discourage domestic and foreign investors from committing capital to the country.
Daniel therefore called for an integrated approach in which economic development and security are treated as mutually reinforcing priorities.
The separate assessments by MAN and Daniel point to a common concern: that stronger GDP numbers will have limited meaning for Nigerians unless they translate into greater productive activity, jobs, business competitiveness, improved security and better living conditions.
- Nine killed in operation to rescue Oyo kidnap victims — DSS DG - September 4, 2026
- Amusan, Ajayi, Nathaniel chase Diamond League history in Brussels - September 4, 2026
- Two workers rescued alive after nine days trapped in Nepal tunnel - September 4, 2026
