Following uncertainties in Nigeria’s economic environment especially towards the end of last year, the Manufacturers Association of Nigeria, MAN, recorded huge investment Decline which negatively affected the sector.
Presenting its summary of findings of the survey of manufacturing sector by the Manufacturers Association of Nigeria (MAN) for the second half of 2022, its
Director General, Mr Segun Ajayi-Kadir, disclosed that Manufacturing sector investment dipped to N145.59 billion in the second half of 2022 down from N160.88 billion recorded in the corresponding half of 2021; thus, indicating N15.29 billion or 10 per cent decline over the period.
It further declined by N32.8 billion or 18 per cent when compared with N178.39 billion recorded in the first half of the year.
Oriental News Nigeria reports that the survey is designed to monitor changes in manufacturing sector performance indicators viz-a-viz the behaviours of macroeconomic and policy environments during the period of the survey. The focus manufacturing indicators include capacity utilization, production value, inventory, level of utilization of local raw materials, investment, expenditure on alternative energy source, etc.
Under the period in survey, Manufacturing, investment totaled N323.98 billion in 2022 as against N305.02 billion recorded in 2021. Investment in the period was affected by the high debt profile of the Government which particularly deters foreign investment, high cost of borrowing, high cost of energy, low consumption during the period and many more.
Also based on MAN survey since 2013, cumulative manufacturing employment was estimated at 1,686,725 at the end of 2022.
However, in the second half of 2022, manufacturing employment dipped to 6741 down from 8508 and 9559 recorded in the corresponding half of 2021 and the first half of 2022 respectively.
The decline in the number of jobs created in the sector during the period corroborates the poor operating business environment that was perverse with high energy cost, exorbitant cost of borrowing, high inflation, low sales due to limited cash and many more.