MAN Hails Growth in Food & Beverage Sector

• MAN Hails Growth in Food & Beverage Sector

The Manufacturer’s Association of Nigeria (MAN) said capacity utilisation in the Food, Beverage and Tobacco group increased to 60.3 per cent in the second half 2016, from 53.7 per cent recorded in the corresponding half of 2015, indicating a 6.6 percentage points increase in the period.

It further explained that it increased by 10.5 percentage points when compared with 49.8 per cent recorded in the preceding half.

MAN president Dr. Frank Udemba Jacobs, in an analysis of the period, said Textile Apparel & Footwear increased to 56.9 per cent in the period under review from 52.7 percent recorded in the corresponding half of 2015, indicating 4.2 percentage points increase over the period.

On industrial zones, he explained that MAN industrial zones shows that capacity utilisation increased in Rivers, Ikeja, Apapa, Kano Bompai, Ogun and Kaduna states but lamented that it fell in Bauchi,Benue,Plateau, Anambra,Enugu, Kano Sharada,Challawa, Oyo states. Others are Ondo, Osun, Ekiti, Imo, Abia, Edo and Delta zones in the period under review.

He specifically stated that in Imo and Abia states, capacity utilisation declined by 51.7 per cent in the period under review, indicating 19.2 percentage point decline over the period.

It was however, a different story in Ogun State where capacity utilisation increased to 68.0 per cent, from 59.5 per cent recorded in the corresponding half of 2015, indicating 8.5 percentage point increase over the period.

On manufacturing production value, the MAN boss said it was estimated at N5.02 trillion as against N4.08 trillion of the corresponding half of 2015, indicating N0.94 trillion or 23.0 per cent increase over the period.

It further increased by N1.66 trillion or 49.4 per cent when compared with N3.36 trillion of the preceding half.

He noted that the manufacturing sector totaled N8.38 trillion as against N7.71 trillion of 2015, indicating N0.67 trillion or 8.7 per cent increase over the period.

Udemba revealed that production value in Motor Vehicle & Miscellaneous Assemble group stood at N2.45 trillion in the period, as against N1.79 trillion of the corresponding half of 2015. This indicated N0.66 trillion or 36.9 per cent increase over the period, increasing by N1.31 trillion or 83.4 percent when compared with N1.57 trillion of the preceding half.

According to him, in the period under review, production in Foods, Beverage and tobacco group increased N1.59 trillion as against N1.41 trillion of the corresponding periods of 2015, indicating N0.18 trillion or 12.8 percent increase over the period.

Others are Chemical and Pharmaceutical group that grew to N362.6 billion, Basic Metal, Iron & Steel and Fabricated Metal N202.97 billion, Domestic and Industrial Plastic, Rubber and Foam stood at N183.73 billion, Non-Metallic Mineral products stood at N82.44 billion while Textile Apparel, Carpet, Leather & Leather Wear was N24.90 billion in the period.

Analysis across industrial zones showed that production value in Ikeja stood at N2.87 trillion in the period under review.

Jacobs further stated that on annual basis, production value stood at N4.65 trillion in Ikeja in 2016 as against N4.02 trillion of 2015, indicating N0.63 trillion or 15.6 per cent over the period.

Apapa production totaled N449.0 billion in 2016 as against N273.15 billion recorded in 2015 indicating N175.85 billion.

Finally, production in Ogun zone increased to N1.79 trillion in the period under review, indicating N0.23 trillion or 14.7 per cent increase over the period.

The MAN boss, however, asked that government implement robust policies to grow the sector by special intervention programmes in funding and infrastructure provision.