Manufacturing value drops YoY
By Jeph Ajobaju, Chief Copy Editor
Manufactured goods declined 36 per cent from N4.51 trillion from the second quarter of 2021 (Q2 2021) to N2.87 trillion in Q2 2022, the National Bureau of Statistics (NBS) has disclosed in its latest report.
Foreign trade statistics measure goods traded between an economic entity and its economic counterparts.
The fall in manufactured goods comes as manufacturers grapple with skyrocketing costs and a harsh operating environment.
Export of manufactured goods also saw a 43.5 per cent dip from 211.67 billion in 2021 to N119.53 billion in 2022.
The Manufacturers Association of Nigeria (MAN) says in its “Manufacturers CEO’s Confidence Index” that its members adopt survival strategies to improve production.
The decline in manufactured exports was expected, said Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) Director General Olusola Obadimu, per The PUNCH.
Unresolved port-related issues have made exportation more difficult for manufacturers, he stressed.
_________________________________________________________________
Related articles:
Manufacturing rises above pandemic with 9% growth
Manufacturers complain they can’t access CBN loan
Manufacturing tops investment inflow with $8.99b
_________________________________________________________________
Unfavourable macroeconomic policies
Obadimu said insecurity in the country has also significantly affected farming, which, in large part, accounts for raw materials used in manufacturing, according to The PUNCH.
Sheriffdeen Tella, a Professor of economics at Olabisi Onabanjo University (OOU), Ago Iwoye, Ogun State noted that Nigeria’s macroeconomic policies remain unfavourable for manufacturers.
He said the combined forces of inflation, interest rate, energy costs as well as other factors are a heavy strain on manufacturing activities.
“All those things have made the manufacturing sector to shrink and that is a very bad situation for the country,” Tella added.
“You find out that the manufacturing sector is a sector that drives other sectors of the economy in terms of production and employment.
“The manufacturing sector is the sector that provides raw materials from the agricultural sector, provides some other goods to some other sectors of the economy and it is that same sector that, when they finish production, will also positively affect the service sector.”
 to N2.87 trillion in Q2 2022){kind=link}