Manufactured goods exports from Africa’s most populous country surged by 67.2 per cent in the second quarter of 2025, an indication of a positive trend in the country’s industrial sector.

Data from the foreign trade report showed that the country’s exports for the period rose to N803.8 billion in Q2 2025 when compared to N480.8 billion recorded in the corresponding period of 2024 on a year-on-year basis.

On a quarter-on-quarter basis, the manufactured exports increased by 173 percent from N294 billion in the first quarter of 2025.

A breakdown of the report shows that the value of manufactured goods traded in the second quarter of 2025 stood at N8.7 trillion, accounting for 22.8 percent of total trade for the period.

According to the report, the main manufactured export commodity was lightvessels, fire-floats, floating cranes and other vessels exported to the Netherlands and France worth N212.04 billion and N24.1 billion respectively.

This was followed by floating or submersible drilling or production platforms valued at N90.43 billion exported to Equatorial Guinea and unwrought aluminum alloys exported to Japan and India worth N55.71 billion and N7.62 billion respectively.

Further analysis revealed that manufactured goods were mainly exported to Europe, with goods valued at N357.70 billion, followed by exports to Africa worth N254.07 billion and to Asia worth N168.53 billion.

The August Purchasers Manufacturing Index released last week showed that business activity rose for the ninth consecutive month in August, an indication of increased production. The headline index rose to 54.2 from 54 in the previous month. Readings above 50.0 signal an improvement in business conditions, while those below show deterioration.

The report stated, “At 54.2 in August, the headline PMI was above the 50.0 no-change mark for the ninth month running, signalling a sustained improvement in the health of the Nigerian private sector.”

The latest reading marked the strongest expansion since April, supported by sharper growth in output and new orders, which reached four- and 19-month highs, respectively.

The foreign trade report also showed that the main manufactured goods imported were machines for reception, conversion and transmission of voice, images or data imported from China, valued at N261.1 billion. This was followed by other herbicides, anti-sprouting products and planters from China and India with N144.1 billion and N5.9 billion respectively.

Other manufactured goods imported were new pneumatic tyres of a kind used on buses and lorries from China, with N135.9 billion and other medicaments not elsewhere specified imported from India and China, valued at N73.4 billion and N26.4 billion, respectively.

According to manufacturers, the high raw materials and machinery import bill is due to exchange volatility. The country’s currency traded against the greenback during the period at 1,600/$ as against N1,550 in the corresponding period of 2024, according to BusinessDay’s analysis.

Manufacturers import their raw materials invoiced in dollars, which they must now purchase using the slumping naira. Depending on the sector, exposure to the FX market in the Nigerian manufacturing sector averages about 40 per cent, according to the Manufacturers Association of Nigeria.

But it differs from sector to sector. Sectors like pharmaceuticals and chemicals would naturally have higher FX exposure because most of their inputs are imported owing to the limited petrochemical industry in Africa’s most populous nation. Products from inputs to machinery are imported into the country weekly by manufacturers.

The fact that manufacturers are the biggest importers, however, is ironic given that the sector should naturally be at the forefront of exporting and repatriating FX into the economy.

Segun Ajayi-Kadir, director-general of the Manufacturers Association of Nigeria, highlighted this challenge at BusinessDay’s Manufacturing conference held in Lagos recently.

He said, “Due to the high and volatile foreign exchange rate and high import duties, the cost of importing needed raw materials has risen astronomically.”

He added, “Sadly, while most of these raw materials are not available locally, those that are available are scarce and becoming limited in supply.”