Manufacturers Bet Big on Nigeria’s Economic Recovery with Increased Investments
Thank you for reading this post, don't forget to subscribe!Manufacturers in Nigeria are ramping up capital expenditure on technology, equipment, and infrastructure, reflecting confidence in an economic rebound despite lingering challenges.
Data from leading companies such as Unilever Nigeria Plc, Cadbury Nigeria Plc, BUA Foods, Nigerian Breweries, and McNichols Consolidated Plc show a combined capital expenditure (Capex) of N179.3 billion in 2024—a 26.4% increase from the previous year, marking the highest investment level since 2020.
This surge in spending comes as Nigeria’s economy shows signs of stabilization after a period of slow growth driven by inflation, currency volatility, and supply chain disruptions. Analysts suggest that manufacturers are strategically positioning themselves to enhance productivity, improve efficiency, and expand their production capacity to meet growing consumer demand.
The Manufacturers Association of Nigeria (MAN) reported a marginal rise in its CEO Confidence Index (MCCI), which increased by 0.5 points to 50.7 in Q4 2024, signaling cautious optimism among industry leaders. While the reading remains above the 50-point threshold, indicating expectations of economic expansion, it still trails the 51.8 recorded in the same period of 2023.
The Central Bank of Nigeria’s (CBN) latest Purchasing Managers’ Index (PMI) also pointed to economic growth, standing at 50.2 in January 2025—marking the second consecutive month of expansion. However, the services sector lagged behind, showing signs of contraction.
Despite these positive indicators, industry stakeholders warn that persistent challenges such as high energy costs, multiple taxation, and poor infrastructure could hinder long-term growth. The recent rebasing of Nigeria’s Consumer Price Index (CPI) saw inflation fall to 24.48% in January from 34.8% in December, a shift analysts say could provide better economic insights but may also shrink the informal economy.
Nigerian Breweries, one of the country’s largest manufacturers, significantly increased its capital investments, with its Property, Plant, and Equipment (PPE) valuation rising to N535.2 billion from N441.4 billion in 2023. The company’s N137.5 billion in capital expenditures—spanning machinery, packaging materials, and infrastructure—highlights the sector’s broader trend of reinvestment and expansion.
As manufacturers double down on investments, the coming months will determine whether these strategic moves translate into sustained economic momentum or if structural hurdles will continue to weigh on growth.
