Chai! Nigeria’s Manufacturing Sector Is Suffering
Still on Nigerian economy performance in the second quarter of this year, the manufacturing sector, which analysts had predicted will drive economic growth, performed rather poorly.
It didn’t fare any better in the preceding quarter.
Between April and June, the sector recorded a total output of 1.54 trillion naira, according to the latest National Bureau of Statistics, NBS report.
This shows a decline of 60 billion naira in the total output when compared to 1.59 trillion naira recorded in the first quarter of the year.
However, the Central Bank of Nigeria, CBN’s Purchasing Manager’s Index which also tracks manufacturing output, showed that the sector recorded growth for the 17th consecutive month in August 2018 at 57.1 index points.
The NBS report showed that out of 13 sub-sectors making up the manufacturing sector, four recorded increase in economic performance between April and June, while nine recorded decline in productivity.
The four subsectors that recorded increase in economic performance are: oil refining, from 29.12 billion naira to 37.2 billion naira; chemical and pharmaceutical products, from 36.47 billion naira to 38.7 billion naira; non-metallic products, from 58.29 billion naira to 59.25 billion naira; and electrical and electronics, from 924 million naira to 1.21 billion naira.
The nine subsectors that recorded decline in productivity are: cement, from 148.2 billion naira to 137.46 billion naira; food, beverage and tobacco, from 723.9 billion naira to 702.36 billion naira; textile, apparel and footwear, from 355.9 billion naira to 339.76 billion naira; wood and wood products, from 52.4 billion naira to 47.7 billion naira; and pulps and paper products, from 13 billion naira to 12.8 billion naira.
Others are plastic and rubber products, from 55.7 billion naira to 55.26 billion naira; iron and steel, from 40.1 billion naira to 39.7 billion naira; other manufacturing, from 73.53 billion naira to 60.5 billion naira; and motor vehicle assembly, from 7.67 billion naira to 7.5 billion naira.
Don't forget to share this story with your friends.