Nigeria’s dependence on imported manufactured goods intensified in the first half of 2026 as the value of such imports climbed to nearly N18 trillion, putting renewed pressure on domestic producers already grappling with high financing, energy and operating costs.
Latest Foreign Trade Statistics released by the National Bureau of Statistics (NBS) showed that manufactured goods imports rose 16.9 per cent year-on-year (YoY), from N15.4 trillion in the first half of 2025 to N17.99 trillion in H1 2026.
The increase was particularly pronounced in the second quarter, when imports of manufactured goods rose 12.1 per cent quarter-on-quarter (QoQ) to N9.51 trillion, compared with N8.48 trillion recorded in the first quarter of the year.
On a year-on-year basis, the Q2 2026 figure represented a 20.7 per cent increase over the N7.88 trillion recorded in Q2 2025.
The first quarter had also recorded strong growth, with manufactured imports rising by 13 per cent YoY from N7.51 trillion in Q1 2025.
The latest figures come against the backdrop of sustained government efforts to strengthen domestic production, deepen local content and encourage import substitution.
However, the continued rise in manufactured imports is renewing concerns over the ability of Nigerian manufacturers to compete effectively with imported products, particularly as producers contend with elevated production costs, expensive credit and persistent energy challenges.
Industry operators have repeatedly warned that the cost of doing business is limiting their ability to expand production and compete on price with imported alternatives.
The Manufacturers Association of Nigeria (MAN), in June 2026, highlighted the financing challenges confronting the sector, noting that bank credit to manufacturing declined by N1.92 trillion to N6.61 trillion in December 2025, from N8.53 trillion a year earlier.
The association also raised concerns over the cost of borrowing in the economy. It noted that although the Central Bank of Nigeria had reduced the Monetary Policy Rate (MPR) to 26.5 per cent, average prime lending rates remained around 27 per cent, while maximum lending rates at some commercial banks reached 35.6 per cent.
For manufacturers, the combination of limited access to affordable credit and high production costs presents a significant constraint to expanding capacity and improving competitiveness.
The rising import figures therefore place renewed focus on the effectiveness of existing measures aimed at encouraging local production. Manufacturers have called for stronger action against smuggling and unfair import competition, alongside policies that would reduce the cost of finance, energy and other critical inputs.
Industry stakeholders argue that creating a more competitive operating environment would enable local producers to increase output, invest in productive capacity and compete more effectively with imported manufactured goods.
The H1 2026 import figures thus underline the continuing tension between Nigeria’s push for domestic industrialisation and the strong demand for manufactured products supplied from abroad.