Nigeria’s manufacturing sector is showing signs of recovery, with the Nigerian Economic Summit Group (NESG) reporting that the sector recorded the strongest business performance among major industries in August 2026. The Current Business Performance Index for manufacturing rose to 120.4 points, up from 110.5 in July. This growth is supported by increased optimism from manufacturers, driven by recent policy reforms and government initiatives. However, despite this positive sentiment and expanded output, structural challenges such as high production costs, electricity shortages, and limited financing continue to weigh on the sector.