Manufacturers Association of Nigeria (MAN) has disclosed that poor macroeconomic ambience, infrastructure issues and poor regulation by government agencies resulted to the country’s manufacturing production value declining to N4.61 trillion in first half of 2019 from N4.76 trillion recorded in the corresponding half of 2018.
Consequently, the figure shows N15 billion or 3.2 per cent decline as many local manufacturers faced production headwinds in the first half of 2019.
MAN, in its latest economic summary report for the first half of 2019, explained that the country’s manufacturing sector was adversely hindered by capacity utilisation, which affected production level of manufacturers in the country.
According to the MAN report, the country’s manufacturing production value also slowed by N61 trillion (11.6 per cent) when compared with N5.2 trillion recorded in the second half of 2018.
MAN said: “Manufacturing production value slowed to N4.61 trillion, which indicates N0.15 trillion (3.2 per cent) decline from N4.76 trillion recorded in the corresponding half of 2018 It also slowed by N0.61 trillion (11.6 per cent) when compared with N5.2 trillion recorded in the second half of 2018.
“Manufacturing production in the first half of 2019 was affected by the same challenges that hindered capacity utilisation in the period such poor macroeconomic ambience, infrastructure issues and poor regulation by Government agencies.”
However, the association’s economic report indicated that analysis based on sectoral group performance showed that production value in almost all the groups slowed in the first half of 2019.
For instance, the value of production in foods, beverage and tobacco sector which stood at N1.43 trillion in the first half of 2019 declined by N0.12 trillion (7.7 per cent) in the first half of 2019 from N1.55 trillion recorded in the corresponding half of 2018.
It also slowed by N0.27 trillion (15.9 per cent) when compared with N1.7 trillion recorded in preceding half.
Also, production value in chemical & pharmaceutical sectoral group declined to N313.16 billion in the first half of 2019; thus indicating N23.45 billion (6.96 per cent) and N60.65 billion (16.22 per cent) decline when compared with N336.61 billion and N373.81 billion recorded in the first and second halves of 2018 respectively.
For production in pulp, paper & paper products, printing, publishing & packaging (6Ps) group, it stood at N74.58 billion in first half of 2019, representing N11.20 billion (17.7 per cent) increase from N63.38 billion recorded in the corresponding half of 2018.
It, however, declined by N12.60 billion (16.6 per cent) from N75.84 billion recorded in the preceding half.
Similarly, in domestic & industrial plastic group, production value declined to N158.53 billion in the first half of 2019 from N166.21 billion recorded in the corresponding half fin 2018; thus, indicating N7.68 billion (4.62 per cent) decline over the period.
It also declined by N23.99 (13.12 per cent) when compared with N182.52 billion recorded in the second half of 2018.
Conversely, in electrical & electronic sectoral group, production value increased to N50.52 billion in the first half of 2019 from N46.6 billion recorded in the corresponding half of 2018; thereby indicating N3.92 billion (8.41 per cent) increased over the period.
However, it declined by N7.25 billion (12.5 per cent) when compared with N57.77 billion recorded in the first half of 2019.
