- Manufacturing Output Expands to N1.5Trillion in Q2
Nigerian manufacturing output rose to N1.5 trillion in the second quarter of the year, according to the National Bureau of Statistics report.
This was N60 billion lower than the total output recorded in the preceding quarter, despite the consistency claimed by the Central Bank of Nigeria.
The CBN, in its last manufacturing report, said the sector grew for the 16th consecutive month in July with Purchasing Managers’ Index standing at 56.8.
Further analysis of the report showed that out of 13 subsectors making up the manufacturing sector, four of the sector recorded growth during the quarter, while the remaining nine declined in productivity.
The four subsectors that grew during the quarter were oil refining that expanded from N29.12 billion to N37.2 billion, chemical and pharmaceutical products that grew from N36.47 billion to N38.7 billion, non-metallic products that increased from N58.29 billion to N59.25 billion and electrical and electronics that climbed from N924 million to N1.21 billion.
The nine subsectors that recorded decline in productivity are cement, from N148.2bn to N137.46bn; food, beverage and tobacco, from N723.9bn to N702.36bn; textile, apparel and footwear, from N355.9bn to N339.76bn; wood and wood products, from N52.4bn to N47.7bn; and pulps and paper products, from N13bn to N12.8bn.
Others are plastic and rubber products, from N55.7bn to N55.26bn; iron and steel, from N40.1bn to N39.7bn; other manufacturing, from N73.53n to N60.5bn; and motor vehicle assembly, from N7.67bn to N7.5bn.
However, the overall growth of the sector may not be unconnected to the credit facility received by manufacturers across the country in the last one year. According to the credit report of the National Bureau of Statistics, Deposit Money Banks granted the manufacturing sector a total of N2.01 trillion loans during the second quarter to further deepen growth and support job creation.
The sector is expected to grow from -5.8 percent in 2017 to about 10.6 percent by 2020.