President Bola Tinubu‘s reforms that lifted the petrol subsidy and opened the foreign‑exchange market in May 2023 are reshaping Nigeria’s manufacturing environment. Companies that rely on home‑grown inputs are pulling ahead, while firms that depend on overseas raw materials face tighter margins, industry observers said.
Local supply chains gain ground
Experts speaking to a financial outlet note that firms with strong domestic sourcing and backward integration can better absorb the impact of the naira’s adjustment.
Energy costs have more than doubled, straining logistics, and tighter monetary policy has lifted financing rates. Those that source locally are therefore seeing a relative cost advantage.
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Voices from the sector
Dr. Muda Yusuf, chief executive of the Centre for the Promotion of Private Enterprise, said companies that buy raw materials at home are “benefiting from the reforms.” He added that “backward‑integrated firms remain far more competitive than those reliant on foreign inputs.”
Princess Funlayo Bakare Okeowo, managing director of FAE Ltd and vice‑president of the Lagos Chamber of Commerce and Industry, warned that import‑dependent businesses still feel “immense pressure from currency depreciation and global supply‑chain bottlenecks.” She suggested that development finance institutions need more capital to help firms bring in critical machinery.
Official data show a modest rebound in the sector. The National Bureau of Statistics reported real growth of 3.29% year‑on‑year in the first quarter of 2026, with the sector accounting for 9.57% of real GDP.
At the same time, headline inflation lingered at 15.43% in July, and food prices rose over 20.31%. The mix of higher operating costs, expensive credit and weak consumer spending creates a split outcome for different players.
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Local sourcing is becoming a competitive edge.
Cement firms illustrate the edge of domestic sourcing
The cement industry, dominated by Dangote Cement and BUA Cement, showcases how local input linkages can boost resilience.
Overall, the post‑2023 reform period is rewarding firms that have built domestic supply chains while penalizing those still chained to overseas inputs. The next quarter will likely reveal whether policy tweaks can level the playing field or deepen the divide.