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The manufacturing sector is dominated by the production of food, beverages and tobacco, with sugar and bread products generating the greatest value of output. Manufacturing in Nigeria is beset with challenges; chief among them is power supply. Most firms rely on “emergency” power generators to run seamless operations, adding to costs. There are also regulatory issues, a multiplicity of taxes, and trade facilitation issues, and supply variability of rain-dependent agricultural inputs among others. Infrastructure in the transport sector is also a constraint. 

The government, is seeking to encourage the sector through port reforms, import bans, facilitation of cheaper funding and ease of doing business initiatives.