RismadarVoice Reporters
October 5, 2026
Nigerian manufacturers increased their use of locally sourced raw materials from 51.5 per cent in 2021 to 57.1 per cent in 2024, reflecting growing efforts to reduce dependence on imported inputs.
The increase represents about 10.9 per cent growth over the three-yeathe three years, amid foreign exchange pressures, naira depreciation and rising costs associated with importing raw materials and machinery.
Data from the Manufacturers Association of Nigeria, MAN, showed that local raw material sourcing rose steadily from 51.5 per cent in 2021 to 52.8 per cent in 2022 and 53.5 per cent in 2023 before reaching 57.1 per cent in 2024.
MAN Director-General Segun Ajayi-Kadir attributed the increase to manufacturers strengthening backward integration and seeking domestic alternatives to imported materials as foreign exchange and import costs increased.
He said improvements were particularly noticeable in the Wood and Wood Products, Textile, Apparel and Footwear, and Chemical and Pharmaceutical subsectors.
The Electrical and Electronics subsector, however, remained heavily dependent on imported components.
Ajayi-Kadir said the depreciation of the naira in 2023 and 2024 significantly increased the cost of imported machinery and raw materials, encouraging more manufacturers to explore locally available alternatives.
He cited Chemical and Allied Products as an example, saying the company now sources about 90 per cent of its calcium carbonate locally.
The shift towards domestic inputs has coincided with improved capacity utilisation in parts of the manufacturing sector.
Central Bank of Nigeria data cited in the report showed that overall manufacturing capacity utilisation increased from 51.33 per cent in the first quarter of 2025 to 57.50 per cent in the second quarter.
The Non-Metallic Products subsector recorded the highest capacity utilisation at 74.11 per cent during the second quarter, followed by Food, Beverage and Tobacco at 60.73 per cent.
Ajayi-Kadir linked the stronger performance in some subsectors to increased domestic demand, policy measures and greater reliance on locally available raw materials.
He said expanding domestic sourcing could further reduce manufacturers’ exposure to foreign exchange volatility and import-related disruptions while improving business planning and supporting increased production.
MAN maintained that strengthening local supply chains and developing domestic raw-material industries would be important to expanding Nigeria’s manufacturing capacity and creating greater value within the country’s industrial economy.
