Manufacturing rises above pandemic with investment up 6% points
By Jeph Ajobaju, Chief Copy Editor
Manufacturing capacity utilisation grew to 58.9 per cent in 2021 which was 9.4 percentage points higher than 49.5 per cent in 2020 as the sector yanked off Covid restrictions.
A report by the Manufacturers Association of Nigeria (MAN) shows that investment in the sector in the second half of 2021 (H2 2021) rose 6.6 percentage points to 59 per cent against 52.4 per cent in H1 2020.
“There was increased capacities in the paper subsector brought in by five new paper mills that are into recycling of waste papers to produce cartons.
“Also are the additional capacities as BUA Group introduced a cement factory in Sokoto and the new African Glass Limited factory that produced glass products,” the report said.
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Sub-sectoral capacity utilisation expansion
Manufacturing increased in almost all subsectors, except non-Metallic Mineral, according to the report, per reporting by Vanguard.
Capacity utilisation in Food, Beverage and Tobacco rose to 62 per cent in H2 2021 from 58 per in H2 2020 and 52.4 per cent in H1 2021.
Textile Apparel & Footwear hit 67 per cent in H2 2021 from 54 per cent in H2 2020 and 50.2 per cent in H1 2021.
Domestic & Industrial Plastic increased to 65 per cent from 56 per cent in H2 2020 and 51.0 per cent in H1 2021.
Electrical & Electronic expanded to 63 per cent in H2 2021 from 50 per cent in H2 2020 and 49.1 per cent in H1 2021.
Basic Metal, Iron & Steel chalked up to 60 per cent in H2 2021 from 51 per cent in H2 2020 and 57.3 per cent H1 2021.
Non-Metallic Mineral capacity utilisation declined to 46 per cent in H2 2021 from 53 per cent in H2 2020 and H1 2021.
Manufacturing yields 2.28% to GDP growth
Manufacturing grew real Gross Domestic Product (GDP) 2.28 per cent in the fourth quarter ended December 2021 (Q4 2021), greater than 2.01 per cent in Q4 2020 but lower than 3.80 per cent in 2021.
Nominal GDP clinched 25.52 per cent or 0.92 per cent above the rate in Q4 2020 but dipped 7.21 per cent against Q3 2021, according to data published by the National Bureau of Statistics (NBS).
