Nigeria’s Industrial FX Use Falls 21% as Demand for Manufactured Imports Rises

Nigeria’s industrial-sector foreign-exchange utilisation fell by 21.2% to $3.72 billion in the first half of 2026, compared with $4.72 billion in the same period of 2025. Central Bank data show that the decline came as FX use for manufactured products more than doubled to $2.14 billion. The figures may point to increased local sourcing and backward integration in some industries. However, they do not prove that manufacturers have broadly replaced imported inputs with local alternatives. Lower FX use could also reflect weaker production, delayed purchases, import-price changes or difficulties accessing funds. Manufacturing grew by 3.24% in the second quarter, but wider industrial growth slowed and businesses continued to report high energy, financing and logistics costs. Analysts say the real test is whether local sourcing can support stronger factory output, capacity utilisation, competitive prices and sustainable profit margins.

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