Business
Manufacturing index plunges 10% as cement sector contracts – NESG
By Yinka Kolawole
Nigeria’s manufacturing business activity plunged by about 10 per cent in September 2026, as a contraction in the cement subsector and weakening performance across several industries dragged down the sector’s business index, the Nigerian Economic Summit Group (NESG) has said.
The group’s Business Confidence Monitor (BCM) showed that the manufacturing Current Business Performance Index (CBPI) fell to 108.4 points in September from 120.4 points in August, amid persistent cost pressures, tight credit conditions and operational challenges.
Despite the manufacturing setback, overall business activity maintained its expansionary momentum, with the composite CBPI rising to 117.8 points from 112.7 points in August and 107.9 points in September 2025.
According to the NESG, expansion was recorded across all major sectors, with trade delivering the strongest performance. The sector’s index rose sharply to 128.5 points from 112.0 points in August.
The manufacturing slowdown reflected mixed performances among the sector’s largest subsectors. Food, Beverage and Tobacco remained in expansion territory but recorded slower activity, while Textile, Apparel and Footwear performed more strongly than in the preceding month. Cement, however, moved into contraction.
Business activity also contracted in Chemical and Pharmaceutical Products, Plastic and Rubber Products, Wood and Wood Products, Non-Metallic Products, Basic Metal, Iron and Steel, and Motor Vehicles and Assembly.
Pulp, Paper and Paper Products remained in expansion, although its index was unchanged, while Electrical and Electronics recorded stronger activity. Other manufacturing held around the 100-point threshold separating expansion from contraction.
The report identified energy shortages, inadequate raw-material supplies, high rental costs, tight credit conditions and infrastructure deficiencies as major constraints facing manufacturers. These challenges increased operating costs and discouraged fresh investment.
In agriculture, the CBPI rose to 117.7 points in September from 110.5 points in August and 107.3 points a year earlier. Crop production and agro-allied activities recorded stronger expansion, while livestock activity slowed. Forestry and fishing moved into contraction.
The sector nevertheless faced inadequate financing, power outages, insecurity and infrastructure bottlenecks.
Meanwhile, services activity slowed, with its index declining to 107.7 points from 112.4 points in August, although it remained in expansion territory.
The NESG’s findings indicate that stronger trade and agricultural activity supported the broader economy, even as mounting cost pressures and operational constraints continued to undermine manufacturing performance.
