Optimism within Nigeria’s manufacturing sector grew during the second quarter of 2026. The latest Manufacturers CEO Confidence Index (MCCI) released by the Manufacturers Association of Nigeria (MAN) climbed to 52.1 points, a recovery from the 48.7 points recorded in the first quarter.
According to Segun Ajayi-Kadir, Director General of MAN, this rise in confidence stems from positive expectations regarding government policy shifts, such as the Nigeria Industrial Policy and the Nigeria Tax Act 2025. Despite this outlook, he cautioned that the sentiment is fragile because actual business conditions and employment figures remain below the 50-point mark.
Manufacturers continue to face significant obstacles, including electricity shortages, weak consumer demand, and foreign exchange scarcity. Furthermore, the high cost of borrowing, tied to the Central Bank of Nigeria’s 26.5 percent Monetary Policy Rate, hinders investment and expansion. Ajayi-Kadir urged the government to enforce local procurement directives and called for the central bank to lower interest rates to below 20 percent to better support industrial growth.
