Nigeria’s Manufacturing Sector Remains Steady

canada manufacturing
  • Nigeria’s Manufacturing Sector Remains Steady

Manufacturing sector sustained growth for a seventh consecutive month in October, according to the data released by the Central Bank of Nigeria on Tuesday.

The Manufacturing Purchasing Managers’ Index expanded 55 in the month, slightly lower than the 55.3 recorded in September but above the 50 level that divides expansion from contraction and suggests the sector remains steady as the economy continued to recover.

Also, the report showed 11 of the 16 sub-sectors surveyed reported growth in October in the following order: plastics & rubber products; paper products; nonmetallic mineral products; chemical & pharmaceutical products; textile, apparel, leather & footwear; food, beverage & tobacco products; furniture & related products; primary metal; electrical equipment; printing & related support activities; and fabricated metal products.

The gauge of new orders expanded 52.8 in the month, with 7 of the sub-sectors reporting growth, 2 remains unchanged while the remaining 7 contracted in October. This is below the 53.5 recorded in September when 10 sub-sectors reported growth.

Manufacturing Production Index stood at 58.4 level in the month, indicating steady production in the manufacturing sector. But when compared to the 58.8 recorded in September, the pace of increase was slightly slower.

However, inventories index grew 56.5 in October, faster when compared to September 2017. Suggesting that businesses are already preparing for the usual Christmas rush. Ten of the 16 sub-sector recorded growth in raw material inventories, while four sub-sector declined with two remaining unchanged.

Employment in the sector grew at 53.1.

Since the economy rebounded from recession in the second quarter, the Federal Government has deepened its effort at sustaining recovery and broadening economic growth in the non-oil sector.

The Minister of Finance, Kemi Adeosun announced on Tuesday in Abuja that a record-high N797 billion was generated in revenue, Value Added Tax, between January and October 2017.

This further validated improved effort at increasing revenue base as Nigeria looks to diversify the economy.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

Leave a comment

Your email address will not be published.