MAN projects economy to grow 4% by 2026
The Manufacturers Association of Nigeria (MAN) has forecasted the Nigerian economy to grow by four percent in 2026, underscoring renewed optimism in the global and domestic economic outlook.
The projection was contained in MAN’s Think Thank Report, released Tuesday which outlined the association’s outlook for 2026.
“The rationale for these projections is hinged on the ongoing reforms of government, particularly the incentives being channelled to the manufacturing sector through new tax laws, regulatory adjustments, and the operationalisation of the National Council on Industry and other policy frameworks,” the report said.
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The report also cited the implementation of Nigeria’s industrial and green industrial policies as key drivers that will enhance sectoral productivity and competitiveness in 2026.
The association noted that the steady rise in its Manufacturing CEOs Confidence Index since 2025 reaffirms that “the Nigerian economy is on the path to recovery.”
Data from the report showed that Nigeria’s manufacturing output grew by 1.1 per cent in the second quarter of 2025, marking the fifth consecutive quarter of positive growth despite inflationary pressures, political instability, trade tensions, and global supply chain disruptions.
The report further linked the moderate growth to increased defence spending and the heightened demand for military hardware due to regional conflicts, which have spurred stronger economic integration.
Segun Ajayi-Kadir, director general, Manufacturer Association of Nigeria, speaking at a press briefing to unveil the Think Thank Report, expressed optimism in the growth rate of the manufacturing sector.
He explained that with the Federal government incentives such as providing access to single interest loans through the Bank of Industry to the tune of N75 billion to support 75,000 SMEs, tax reliefs, and the Nigeria first policy which allows Nigerian manufacturers eligible to tender for public procurements, manufacturers will experience significantly growth in the coming year.
“You will notice that between just Q2 of 2024 and the first half of 2025, has been a significant growth. There was a jump in capacity utilization, just because manufacturers were able to get loans at single digit interest rate.
“What that means is that if my stock capacity is to produce 1 million bottles, for example, and my capacity utilization, because of the challenges I’m facing is 600 bottles, when I have some incentive from government, I’m not paying for some things, I’ll be able to put that back into the business to boost output.
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“The same way with multiple taxes. Now I’m not paying any of them. Loans, I used to get at 33 percent interest, by the time the stabilization plan comes here, we also have access to loans for a single digit interest rate, and we’ll be able to produce more. You will be able to employ more, and you’ll be able to sell more.
“Imagine government upscaling, patronage. It’s in the government still, to make the largest scale-up, to the economy. Once they do that, it will run into the production.”
