In spite of a series of bottlenecks, the Nigerian manufacturing sector grew by 4.29 percent year-on-year in real terms in the third quarter (Q3) of 2021, the National Bureau of Statistics (NBS) reported last week.
The growth was high than the same quarter of 2020 when COVID-19 plunged the sector and higher than the second quarter by 5.8 percent and 0.08 percent, respectively.
On a quarterly basis, the manufacturing sector rose at a 14.40 percent rate in the quarter and contributed 8.96 percent to the real economy, slightly higher than the 8.93 percent recorded in the third quarter of 2020.
Nigeria’s manufacturing sector comprises 13 subsectors, Oil Refining; Cement; Food, Beverages and Tobacco; Textile, Apparel, and Footwear; Wood and Wood Products; Pulp Paper and Paper products; Chemical and Pharmaceutical products; Non-metallic Products, Plastic and Rubber products; Electrical and Electronic; Basic Metal and Iron and Steel; Motor Vehicles and Assembly; and Other Manufacturing.
In nominal terms, the manufacturing sector expanded at 32.73 percent year-on-year, representing a 19.18 percent increase when compared to the 13.54 percent posted in the corresponding period of 2020 and 5.60 percent points lower than the preceding quarter figure of 38.33 percent.
On a quarterly basis, growth of the sector was recorded at 26.78 percent. The manufacturing sector 15.59 percent to nominal GDP in the quarter, higher 13.56 percent filed in the corresponding quarter of 2020 and 14.18 percent recorded in the second quarter of 2021.
Meanwhile, Investors King reported that the Nigerian economy grew by 4.03 percent in the third quarter of 2021. The oil sector contracted by 10.73 percent year-on-year but posted 12.05 percent growth on a quarterly basis. The sector contributed 7.49 percent to total real GDP.
The non-sector as expected carried the Nigerian economy, growing at 5.44 percent in real terms and contributing 92.51 percent to real GDP.
The non-oil sector was driven by growth in trade, Information and Communication (Telecommunication); other drivers include Financial and Insurance (Financial Institutions); Manufacturing (Food, Beverage & Tobacco); Agriculture (Crop Production); and Transportation and Storage (Road Transport), accounting for positive GDP growth.
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Nigeria’s Presidential CNG Initiative Allocates N100bn for CNG Buses and EV Adoption
The Presidential Compressed Natural Gas (CNG) Initiative has allocated N100 billion to expedite the deployment of CNG buses nationwide, according to a statement released on Wednesday.
The initiative, designed to catalyze an Auto-gas and Electric Vehicle (EV) revolution in mass transit and transportation, aims to enhance sustainability and cost-effectiveness.
The statement revealed that the fund would be instrumental in supporting the adoption of auto-gas and electric vehicles, signaling a commitment to a more sustainable and economical future in the transportation sector.
The Presidential CNG Initiative plans to leverage over 11,500 CNG and electric-fueled vehicles, along with the deployment of 55,000 conversion kits.
This strategic approach is intended to reduce transportation costs for Nigerians and mitigate the challenges posed by the rising cost of living.
Under the Renewed Hope Agenda, the Presidential CNG Initiative is dedicated to realizing the President’s vision, guided by its steering committee led by FIRS Chairman Zacch Adedeji.
The statement highlighted recent achievements, including strategic technical partnerships and the ongoing commissioning of CNG Conversion centers in key states such as Lagos, Abuja, Kaduna, Ogun, and Rivers.
Several more centers are slated for commissioning in the coming weeks, reflecting the initiative’s momentum and commitment to achieving its objectives.
Nigeria’s Power Transformation: 53 Projects Worth N122bn on Track for May 2024 Completion
The Central Bank of Nigeria (CBN), in collaboration with the Transmission Company of Nigeria (TCN) and power distribution companies, is set to complete 53 power projects by May next year.
Valued at N122 billion, these projects aim to add over 1,000 megawatts to TCN’s wheeling capacity.
During a recent tour of three ongoing projects in Lagos, TCN’s Programme Coordinator, Mathew Ajibade, assured that the projects were not abandoned, refuting speculations.
He confirmed that work is progressing smoothly and is expected to be completed by May 2024, as initially planned.
Assistant Director/Head of Infrastructure Finance Office at the CBN, Tumba Tijani, highlighted the CBN’s support for the power sector, revealing that the bank released a loan at a 9% interest rate in August last year for the projects.
The funding, part of the Nigeria Electricity Market Stabilisation Facility-3, amounts to N122,289,344 and aims to address transmission/distribution bottlenecks, enhance supply to end-users, and unlock unutilized generation capacity.
Tijani disclosed that N85.43 billion has been disbursed into the Advance Payment Guarantee account of the 53 contractors responsible for executing the projects.
The comprehensive project list includes the delivery of power transformers, re-conductoring existing transmission lines, upgrading existing substations, and constructing 33KV line bays.
The initiative reflects a concerted effort to enhance Nigeria’s power infrastructure and meet growing energy demands.
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