Manufacturers’ woes continue as industry shrinks by 33%

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Nigeria’s manufacturing sector has continued to navigate through hard times as the nominal GDP growth of the industry in the second quarter of 2022 was recorded at 5.21 per cent on a year-on-year basis.

The growth rate of the sector on a quarter-on-quarter basis stood at -15.47 per cent. Real contribution to GDP in 2022 second quarter was 8.65 per cent, lower than the 8.69 per cent recorded in the second quarter of 2021 and lower than the 10.20 per cent recorded in the first quarter of 2022.

In its Manufacturing CEOs Confidence Index for the second quarter of the year, the Manufacturers Association of Nigeria said that business conditions in the quarter under review were more challenging than what obtained in the first quarter of the year just as employment conditions worsened. According to the report, which measures changes in pulse of operators and trends in the manufacturing sector quarterly, in 2022 alone, manufacturers had faced severe foreign exchange scarcity, forcing many firms out of business.

The central bank has raised the Monetary Policy Rate from 11.5 to 14 per cent, and the prices of diesel and gas have skyrocketed due to the Russia-Ukraine war. While speaking recently on some of the challenges bedeviling the manufacturing sector, MAN President, Engr. Mansur Ahmed, said over-reliance on imported raw materials had become an albatross for the industry.All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.

 

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Sad indeed!!😢😢

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