Manufacturing cuts 3,567 jobs in H1 2023 alone
By Jeph Ajobaju, Chief Copy Editor
Up to 3,567 manufacturing jobs were cut in the first half of 2023 (H1 2023) as unsold stock mounted up to N272 billion amid the national economic hardship that drastically reduces purchasing power across all classes of consumers.
The Manufacturers Association of Nigeria (MAN) disclosed the figures in its half yearly review of the economy, which also shows manufacturing jobs declined to 6,428 in the period, a 32.8 per cent slash versus 9,559 jobs generated in H1 2022.
“In the same vein, a total of 3,567 jobs were lost in the first half of 2023, indicating 1,855 more jobs lost when compared with the 1,709 jobs lost in the corresponding half of 2022, and 850 more jobs lost when compared with 2708 jobs lost in the last half of 2022,” the report said.
MAN blamed the decline in job creation on the unfriendly business environment resulting largely from the poorly implemented currency redesign policy that led to naira scarcity.
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Rising unsold goods
Unsold finished manufactured products increased to N271.9 billion in H1 2023, against N187 billion in H1 2022
This translated into a arise of N84.88 billion or 45.4 per cent in inventory compared with H1 2022 and N11.64 billion or 4.1 per cent reduction from N283.6 billion in H1 2022, according to the report, per The PUNCH.
“This increase in inventory can be attributed to a weakened purchasing power of the consumers, brought about by diminishing real household income resulting from the ongoing escalation of inflationary pressures, compounded by the scarcity of naira in the first quarter of the year and the aftermath of the subsidy removal.”
MAN added subsidy removal and exchange rate unification towards the end of H1 2023 left the economy on the brink of uncertainty, and caused a ripple effect that further eroded investors’ confidence.
“As a result, businesses and foreign investors are increasingly wary of committing capital, thereby hindering economic growth and prospects for recovery.