Production output of Nigeria’s manufacturing sector fell to N6.67 trillion in 2022 from N7.39 trillion in 2021.
Director General of Manufacturers
Association of Nigeria (MAN), Segun Ajayi-Kadir, made this known as part of the
findings of MAN’s survey of the manufacturing sector for the first quarter of
2023.
Explaining that this serves
danger signal to the overall productivity of the economic sector, Ajayi-Kadir said
it will further worsen the country’s forex scarcity, high inflation, and high
cost of energy as well as limited household purchases.
According to him, increased
difficulty in sourcing foreign exchange (forex) compelled the manufacturers to
embrace the use of expensively sourced local raw materials for their operations
in 2022 played major role in reducing manufacturing productivity.
“Manufacturing sector factory output value declined to N2.68 trillion in the second half of 2022 (H1’2022) from N3.73 trillion recorded in the corresponding half of 2021 (H2’2022), thus, indicating N1.05 trillion or 28 percent declined over the period. It also declined N1.31 trillion or 32 percent when compared with N3.99 trillion recorded in the preceding half (H1’2022).
The value of manufacturing production
totaled N6.67 trillion in 2022 as against N7.39 trillion recorded in 2021.
Manufacturing production was severely affected in the second half of 2022 by
absence of implementation of new capital projects by the government as they
focused on the election.
Production in the sector was also
negatively affected by limited purchases by households due to the Naira
redesign policy, the high inflationary pressure in the country, high cost of
energy, particularly diesel and gas, acute shortage of forex for importation of
raw materials and machinery needs of the sector that are not locally
manufactured in the time being and many more,” Ajayi-Kadir said.
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