How Nigeria’s Manufacturing Sector Got Saved – Report
You may never know that Nigeria’s manufacturing sector was threatened by the dollar scarcity that hit the country after the near-collapse of the oil market due to global price crash.
But, it was indeed seriously threatened.
However the situation was arrested by government's intervention through the Central Bank of Nigeria who decided to allocate available dollars to more manufacturers.
While the CBN’s preferential dollar allocation to the manufacturing sector didn’t last long and was even accused of lopsidedness, a report has emerged showing that the initiative registered a huge impact and lent a boost to the manufacturing sector during the period.
The initiative, which commenced in August 2016, came to an end in February this year.
A report by Manufacturers Association of Nigeria’s, MAN on Economic Review of second half of 2016 attributed a 9.54% increase in capacity utilisation (from 49.64% in second half of 2015 to 59.18% in the second half of 2016) to the 60% preferential forex allocation to the manufacturing sector for importation of raw materials and machinery not locally available.
According to the report, “Capacity utilisation averaged 51.74% in 2016 as against 50.17% of 2015, thereby indicating 1.57 percentage point increase over the period”.
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