Nigeria’s import bill for manufactured goods climbed to about N18tn in the first half of 2026, highlighting the continued dependence of businesses on foreign-made products and inputs despite ongoing efforts to strengthen local production.
The H1 figure represents a 16.9 per cent increase from the N15.40tn recorded in the corresponding period of 2025, according to an analysis of the Q1 and Q2 2026 Foreign Trade Statistics released by the National Bureau of Statistics.
The increase became more pronounced in the second quarter, when manufactured goods imports rose to N9.51tn from N8.48tn in Q1 2026.
That represents a 12.1 per cent quarter-on-quarter increase and made Q2 the stronger contributor to the six-month import total.
On a year-on-year basis, the value of manufactured goods imported in Q2 2026 also increased significantly, rising from N7.88tn in Q2 2025 to N9.51tn.
This represents a 20.7 per cent increase within a year.
The first quarter had recorded a more moderate rise, with imports increasing from N7.51tn in Q1 2025 to N8.48tn in Q1 2026, representing a 13 per cent year-on-year increase.
Taken together, the figures point to sustained demand for manufactured products from abroad, either because domestic manufacturers are unable to supply some categories in sufficient quantities or because businesses continue to depend on imported finished products and production inputs.
Q2 surge pushes H1 import bill higher
The N9.51tn recorded in Q2 means manufactured goods imports increased by more than N1tn compared with the preceding quarter.
The acceleration raises questions about the pace at which local production is expanding and whether domestic manufacturers are adequately positioned to meet rising demand across different sectors of the economy.
While government policies have increasingly focused on reducing Nigeria’s dependence on imports, businesses continue to face production constraints that can make locally manufactured products more expensive or less readily available.
Manufacturers face financing and production pressures
The increase in imports comes amid persistent challenges in Nigeria’s manufacturing sector, particularly around access to affordable credit and rising production costs.
The Manufacturers Association of Nigeria raised concerns in June over a significant contraction in bank lending to the manufacturing sector.
According to the association, credit to manufacturers fell from N8.53tn in December 2024 to N6.61tn by December 2025, representing a decline of N1.92tn.
The cost of borrowing has also remained high despite the Central Bank of Nigeria reducing its Monetary Policy Rate to 26.5 per cent.
Average prime lending rates were reported at about 27 per cent, while maximum lending rates at some commercial banks climbed as high as 35.6 per cent.
For manufacturers already dealing with elevated energy costs, inflationary pressures and other operating expenses, expensive credit can make it more difficult to expand production capacity or invest in new equipment.
The combination of high financing costs and rising production expenses could therefore make imported products more attractive to businesses where they are cheaper or easier to source.
Manufacturers have also continued to warn that elevated operating costs and limited access to affordable financing are restricting the sector’s ability to achieve a sustained recovery.
Despite the challenges, manufacturing remains a major component of Nigeria’s non-oil economy and an important source of government revenue.
The sector generated N329.59bn in Value Added Tax revenue during the first quarter of 2026.
Data from the National Bureau of Statistics also showed that manufacturing accounted for 9.57 per cent of Nigeria’s real Gross Domestic Product in Q1 2026.
The Federal Government has continued to identify manufacturing as a key sector for economic diversification, particularly as Nigeria seeks to reduce its exposure to fluctuations in crude oil earnings.
However, the latest trade figures underline the gap between the objective of expanding domestic production and the realities confronting manufacturers.
A sustained increase in imported manufactured products could put additional pressure on the country’s trade position while highlighting the need to address the structural constraints limiting local production.
Government pushes manufacturers towards regional markets
Alongside efforts to strengthen domestic manufacturing, the Federal Government is also encouraging Nigerian producers to look beyond the domestic market.
In September, the government urged manufacturers to take advantage of the ECOWAS Trade Liberalisation Scheme to expand their export activities and gain access to markets across West Africa.
The scheme provides opportunities for qualifying products manufactured within the region to access participating ECOWAS markets under preferential trading arrangements.
For Nigeria, greater participation in regional trade could provide manufacturers with a larger market, increase production volumes and improve their ability to compete beyond the domestic economy.
However, the continued rise in manufactured goods imports suggests that improving domestic production capacity remains critical if Nigeria is to reduce its dependence on foreign products.
The H1 2026 figures therefore present a mixed picture: while manufacturing continues to make a significant contribution to economic output and tax revenue, Nigerian businesses are still spending heavily on manufactured goods from abroad, underscoring the scale of the challenge facing the country’s import-substitution drive.
