Data from international agencies show that employment in Nigeria’s manufacturing sector has increased over the past two decades, but productivity measured by value added per worker has declined, according to a Vanguard report.
The report published on February 9, 2026, draws on data from the United Nations Industrial Development Organization, the World Bank, and the International Labour Organization.
It highlights the trends in employment and productivity in Nigeria’s manufacturing sector over about 20 years.
The data show that the share of manufacturing employment in Nigeria rose from about 9 per cent in the early 2000s to about 14 per cent in 2023.
Despite this rise in jobs, the sector’s productivity performance has not kept pace. Manufacturing Value Added per worker, a key measure of productivity, was about $678 in the late 1990s, dropped to $162 in 2000, rose to $661 in 2014, and declined to around $224 in 2024.
The report notes that the increase in jobs has not translated into proportionate gains in value creation per worker. Statistics show that Nigeria’s MVA per worker in 2023 and 2024 remained far below levels seen earlier in the period under review.
Comparative figures from peer economies indicate higher productivity levels. For example, India’s manufacturing value added per worker was about $1,811 in 2023, Indonesia’s was $804, and South Africa’s was about $1,805, all reported alongside rising employment in those countries.
The report highlights that much of the employment growth in Nigeria’s manufacturing sector has occurred in micro and small-scale enterprises.
These firms often operate with limited access to modern machinery, unstable electricity supply, high energy costs, and restricted access to affordable finance
