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Lagos, Nigeria – By Prime Brief Media
The Centre for the Promotion of Private Enterprise (CPPE) has warned that Nigeria’s weak manufacturing base poses a significant threat to long‑term economic stability, despite recent positive GDP figures. The CPPE’s warning, contained in a macroeconomic review released on 28 May and published by The Guardian Nigeria on 29 May, comes just days after the National Bureau of Statistics (NBS) reported real GDP growth of 3.89% year‑on‑year in the first quarter of 2026.
However, the CPPE argued that the growth remains driven by non‑oil sectors such as telecommunications, financial services, and trade — sectors that are not labour‑intensive. “Without a robust manufacturing base that can absorb the teeming army of unemployed youths, the current growth trajectory is unsustainable,” the CPPE said in the report. The centre further noted that manufacturing’s contribution to GDP has stagnated below 10% for five consecutive years, while underemployment remains above 40% according to the latest NBS labour force survey.
Muda Yusuf, CEO of the CPPE (as quoted by ThisDay on 29 May), added: “We are importing everything from toothpicks to heavy machinery. That is not an economy that can withstand external shocks.” He called for targeted fiscal incentives, improved electricity supply, and a crackdown on smuggling to protect local industries.
In a separate but related development, the African Development Bank (AfDB) Group has projected Nigeria’s economic growth will slow to 3.7% in 2027. The forecast, published in the bank’s Africa Economic Outlook 2026 on 28 May, cites expected declines in global oil prices as the energy transition accelerates. According to the AfDB, Nigeria’s oil revenue which still accounts for over 80% of foreign exchange earnings could fall by an average of 12% annually between 2026 and 2028 if current market trends hold.
The bank projects a modest improvement for 2026 (4.1%) before the deceleration. However, it warned that without rapid diversification into agriculture, manufacturing, and digital services, Nigeria risks a prolonged period of low growth and high debt service costs.
Prime Brief Media is tracking responses from the Ministry of Finance and the Central Bank of Nigeria, as well as any new fiscal measures proposed in the upcoming supplementary budget.
#NigeriaEconomy #Manufacturing #GDP #PrimeBriefMedia #GlobalEconomy #AfDB
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