Lagos: The Manufacturers Association of Nigerian (MAN) in her executive summary of second half reports of 2017 released showed that the manufacturing sector output grew by 0.14 percent in the fourth quarter of 2017 up from -2.54 percent recorded in the corresponding quarter of 2016; thereby by indicating 2.68 percentage point increase over the period. According to the reports, it also increased by 2.99 percentage point when compared with -2.85 percent growths recorded in the preceding quarter.
“In terms of import trade, China ranked first amongst Nigeria’s import trade partners with import trade value of N465.13 billion; behind China was the Belgium with N191.05 billion import commodities while United States ranked third with N189.36 billion worth of imports.”
“At the end of 2017, an estimated 1,649,612 historical cumulative jobs were created in the manufacturing sector based on the information gathered from the various surveys conducted by MAN over time.
“A total of 10,257 manufacturing jobs were created in the second half of 2017 as against 10,061 jobs created in the corresponding half of 2016; thus indicating an increase of 196 jobs over the period.
“Food, Beverage and Tobacco sectoral group accounts for most of the jobs created in the manufacturing sector as it created 3,994 jobs in the second half of 2017.
“A total of 5,212 jobs were lost in the period under review as against 5,079 jobs lost in the preceding half; thereby indicating an increase of 133 jobs lost over the period.”
Electricity Supply to Manufacturers
According to the reports, the sector, in the period under review, experienced inadequate electricity supply with an average of 9 hours and 4 times power outage daily. Manufacturers’ expenditure on alternative energy utilization in the period declined to N51.35 billion from N66.96 billion expended in the corresponding period of 2016; thus, indicating N15.61 billion decline over the period. It also declined by N14.72 billion when compared with N66.03 billion recorded in the preceding half.
The reports revealed that the expenditure on alternative energy utilization in the sector totaled N117.38 billion in 2017 as against N129.95 billion recorded in 2016; thus, indicating N12.57 billion declines over the period. The decline in expenditure on alternative energy source can be attributed to the relative improvement in electricity supply to manufacturing companies from the national grid, it was noted.
Cost of Funds to Manufacturers
MAN in its lamentation said the inadequate and high interest rate remained major challenges to the manufacturing sector in the period under review. The association in its survey shown that cost of lending to the manufacturing sector stood at 23.05 percent in the second half of 2017 which is almost the same figure with 23.3 percent recorded in the corresponding period of 2016. However, it increased by 0.37 percentage point when compared with 22.65 percent recorded in the preceding half.
“Lending rate from the commercial bank to the manufacturing sector averaged 22.8 percent in 2017 as against 22.4 percent average recharged in 2016; thus indicating 0.4 percentage point increase over the period.”