Nigeria's non-oil export earnings reached N3.73 trillion in the second quarter of 2026. However, this growth has not translated into stronger manufacturing competitiveness. High energy and logistics costs, expensive financing, and cheap imports continue to hinder local producers. The National Bureau of Statistics' Q2 2026 Foreign Trade in Goods Statistics reported total exports of N27.02 trillion during the quarter. Non-crude oil exports accounted for N14.11 trillion, while non-oil products stood at N3.73 trillion, representing 13.8 per cent of total exports.
The growth in non-oil earnings did not come from factories, but from other petroleum products and raw or semi-processed commodities. Other petroleum products generated N10.38 trillion, while raw and semi-processed commodities like cocoa, sesame, cashew, and minerals contributed significantly. Manufactured exports, a key measure of industrial competitiveness, fell sharply by 51.1 per cent year-on-year to N393.03 billion from N803.81 billion in Q2 2025.
In contrast, manufactured goods imports rose 20.65 per cent year-on-year to N9.51 trillion from N7.88 trillion recorded in the same quarter last year. This resulted in a manufactured-goods trade deficit of about N9.12 trillion in just three months. The Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI) have expressed concerns about the impact of high costs on Nigeria's manufacturing competitiveness.
Segun Ajayi-Kadir, director-general of MAN, stated that producing for export is no longer enough; Nigerian goods must also compete on price and quality in destination markets. He noted that energy, finance, transportation, taxes, raw materials, and other operating expenses have remained major constraints on export competitiveness. Ajayi-Kadir emphasized that the high-cost environment could prevent Nigerian products from displacing competing goods in target markets.
Many manufacturers with export potential are unable to take advantage of the African Continental Free Trade Area (AfCFTA) due to their cost structure, making their goods uncompetitive even in neighbouring West African markets. Dr Chinyere Almona, director-general of the LCCI, said the headline non-oil export figure masks a lack of value addition. She explained that the N3.73 trillion non-oil export figure is welcome but largely driven by raw and semi-processed commodities, not manufactured goods.
Almona further stated that manufacturers are struggling because the cost of production in Nigeria is significantly higher than in peer countries. She noted that energy, logistics, high interest rates, and port delays make Nigerian goods 25 to 30 percent more expensive than those from Ghana and Egypt before they even leave Nigeria's shores. This high cost of production hampers the competitiveness of Nigerian manufacturers in the global market.
The stakeholders' concerns highlight the need for the government to address the challenges facing Nigeria's manufacturing sector. Reducing energy and logistics costs, providing affordable financing, and implementing policies to support local producers can help improve the competitiveness of Nigerian goods. By addressing these challenges, Nigeria can increase its manufactured exports, create jobs, and strengthen its position in global markets.
Key points
- High energy and logistics costs undermine local producers.
- Manufactured exports fell sharply by 51.1 per cent year-on-year.
- Nigerian goods are 25 to 30 percent more expensive than those from Ghana and Egypt.
