NIGERIA – The value of Nigeria’s manufacturing output rose by US$11.89bn (N4.33tn) to reach US$46.07bn (N16.78tn) in 2019, a report by the National Bureau of Statistics (NBS) has shown.
An analysis of the Gross Domestic Product report from the NBS showed that the 2019 output represented an increase of 34.78 per cent when compared to the 2018 output of US$34.18bn (N12.45tn).
According to the report, 12 out of 13 of the country’s manufacturing sub sectors recorded an increase in economic performance between 2018 and 2019, while one sub sector recorded decreased productivity.
Cement recorded an increase of about N900bn (US$2.47bn) to achieve a total output of N2.24tn (US$6.15); food, beverage and tobacco rose by N1.05tn (US$2.88bn), while textile apparel and footwear by N960bn (US$2.64bn).
The wood sub sector on the other hand, rose by N83.07bn (US$ 228.06m); pulp, paper and paper products from N77.63bn (US$213.12m); chemical and pharmaceutical products by N180.5bn (US$494.17m); and non-metallic products which rose by N337.03bn (US$925.28m).
The report also showed that plastic and rubber products subsector recorded an increase of about N258.bn (US$70.83), while electrical and electronics, basic metals motor vehicle and other manufacturing grew by US$17.34m, US$468.77m, US$234.25m and US$791.75 respectively.
The subsector that recorded decline in productivity was oil refining which dropped by N61.87bn (US$170.61m).
The positive growth in manufacturing is a boost to Nigeria which in its Economic Recovery and Growth Plan (EGRP) had said it would pursue manufacturing promotion policies that would enable the sector record an average annual growth rate of 8.48 per cent between 2018 and 2020.
Punch Nigeria reported that the ERGP was expected to build on the Nigeria Industrial Revolution Plan to address the key challenges in manufacturing.
Some of these challenges are: limited access to credit and financial services, poor infrastructure and unreliable power supply that forces businesses to rely on generators, thus increasing their input costs and reducing their overall competitiveness and profitability.
