"Nigeria: Manufacturing sector witness stagnant growth between 2018 and 2022"

" Nigeria: Manufacturing sector witness stagnant growth between 2018 and 2022 \r\n\r\n The contribution of the manufacturing sector to Nigeria\u2019s Gross Domestic Product (GDP) has stunted in the last five years. \r\n\r\n National Bureau of Statistics (NBS) data revealed that the sector contributed around N32 trillion in the last five years.\u00a0 \u00a0 \r\n\r\n According to the NBS, Nigeria\u2019s GDP for the years between 2018 and 2022 stands at 358.32 trillion of which manufacturing contributed a meagre N32 trillion. This represents just 9% of the country\u2019s economy.\u00a0 \u00a0 \r\n\r\n Further analysis from the NBS data showed that in 2018, Nigeria\u2019s GDP was N69.7 trillion of which the manufacturing sector contributed N6.4 trillion. For 2019, the country\u2019s GDP was N71.38 trillion and the manufacturing industry contributed N6.47 trillion. \u00a0 \r\n\r\n For 2020, 2021 and 2022, the sector contributed 8.99%, 8.98% and 8.92% respectively to the country\u2019s economy. \u00a0 \r\n\r\n Expert\u2019s Reaction. \u00a0 \u00a0 \r\n\r\n Experts and players in the sector have decried the high energy cost, forex scarcity, inflation in the price of raw materials and inputs, and high lending interest rate among others as responsible for the industry\u2019s current malaise.\u00a0 \u00a0 \r\n\r\n The President of the Nigeria Association of Chamber of Commerce, Industry, Mines and Agriculture Mr Ide John Udeagbala noted that a 9% average contribution to national output indicates the country is falling below its industrialization goals.\u00a0 \u00a0 \r\n\r\n According to him, \u201cI think that a situation where less than one-in-ten products produced in the Nigerian economy is the outcome of an industrialized process does not bode well for our economic growth and development objectives. This is because industrialization\u00a0is well-established as a pathway to development.\u00a0 \r\n\r\n Although Nigeria has an advanced services sector, an average manufacturing contribution of 9% to national output (GDP) indicates that we are falling well below our industrialization goals. \u00a0 \r\n\r\n The Director-General of the Manufacturers Association of Nigeria (MAN) also commented on the worrying phenomenon thus \u201cConceptually, manufacturing is unarguably the backbone of national economic\u00a0 development. \u00a0 \r\n\r\n \u201cIt is countries that can transform their raw materials into a wide range of furnished goods and add prosperous value. Beyond the role of the sector in the domestic economy, manufactured exports expand the scope of trade, commerce and foreign exchange inflow.\u201d\u00a0\u00a0 \r\n\r\n The Way Forward\u00a0 \u00a0 \r\n\r\n Stakeholders at the\u00a0 Equipment and Manufacturing West Africa (EMWA) 2023 tasked \u00a0the Federal government to prioritize the manufacturing sector through policies that encourage local and foreign investment in the sector.\u00a0 \u00a0 \r\n\r\n Speaking on the sidelines of the conference, Amb. Joseph Oru, the event director remarked that \u201c Despite how the election year has turned out to be and with a new government in place, I urge them to come out, collaborate with the private sector and put manufacturing at the forefront of their policies to build a better Nigeria\u201d\u00a0 \u00a0 \r\n\r\n \u00a0 Recent Development\u00a0\u00a0 \r\n\r\n In the just released NBS report on Gross Domestic Product (GDP) for the first quarter of 2023, the manufacturing sector saw a slump in growth from 4.28% in the preceding quarter to 1.61%. However, its contribution to the total economy was 10.13% higher than the 8.40% recorded for the previous quarter. \u00a0 \r\n\r\n \u00a0 "

"Nigeria: Manufacturing sector witness stagnant growth between 2018 and 2022"

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