Manufactured goods exports in Africa’s most populous country surged 10 percent in the first 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 by 10 percent to N294 billion in Q1 2025 when compared to N268 billion recorded in the corresponding period of 2024.
A breakdown of the report shows that the value of manufactured goods traded in the first quarter of 2025 stood at N7.8 trillion, accounting for 21.7 percent of total trade for the period.
According to the report, the main export commodity was unwrought aluminium alloys, exported to Japan and China, worth N34 billion and N4.3 billion respectively.
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This was followed by dredgers valued at N337 million exported to Spain, and cathodes and sections of cathodes exported to Japan and South Korea, worth N11 billion and N8.6 billion respectively.
The data revealed that manufactured goods were mainly exported to Asia, valued at N103 billion, followed by exports to Africa at N83 billion and to Europe, N75 billion.
The data also showed that manufacturers imported manufactured goods worth N7.5 trillion, indicating a 31.6 percent increase from N5.7 trillion in the corresponding quarter of 2024.
According to manufacturers, the high raw materials and machinery import bill is due to exchange volatility.
The country currency traded against the green bag during the period was 1,650/$ 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 percent, according to the Manufacturers Association of Nigeria (MAN).
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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, ironically, given that the sector should naturally be at the forefront of exporting and repatriating FX into the economy.
“Due to the high and volatile foreign exchange rate and high import duties, the cost of importing needed raw materials has risen astronomically,” said Segun Ajayi-Kadir, director-general of the Manufacturers Association of Nigeria (MAN) at the BusinessDay’s Manufacturing conference held in Lagos recently.
“Sadly, while most of these raw materials are not available locally, those that are available are scarce and becoming limited in supply,” he added.
