Electrical manufacturing contracts by lost 6.7pts, MAN blames smuggling, counterfeiting

A report by the Manufacturers Association of Nigeria has shown that the electrical and electronics manufacturingsector lost 6.7 basis points in its performance during  the last quarter of 2018.

The report is based on the Central Bank of Nigeria’s Purchasing Managers’ Index report for December 2018.

The PMI had revealed improved performances across the sub-sectors, save for Electrical & Electronics sectoral group.

Although the performance of the sector was above 50 points benchmark, its basis point contracted by 6.7 points.

MAN has however blamed the performance on smuggling and counterfeiting of locally manufactured electrical goods.

The association stated, “Although the performance of Electrical & Electronics sectoral group recorded above 50 points benchmark, its basis point contracted by 6.7 points, owing mainly to the menace of smuggling and counterfeiting that has continually plagued its performance.

“Obviously, Government needs to support operators in the group with policies that will discourage unbridled inflow of used and smuggled electrical and electronics products to the country.”

In its analysis of the PMI, MAN observed that the Textile Apparel & Footwear sectoral group recorded the most significant improvement with a positive change of 13.9 points.

It stated, “The performance of this group in recent times could be attributed to a number of factors, which include fiscal support, improved local patronage, and incentives for cotton growers, increasing access to development finance windows, and the recent approved concessional gas pricing mechanism.

MAN concluded that the improvement in indices of the various sectors showed that the manufacturing sector was on the path of sustainable growth.

It also credited the improved economic spending during the festive season and the increased  patronage of made-in Nigeria goods with the positive performance of the manufacturing sector during the last months of 2018.

It said, “In broad terms, the report revealed relative improvement in manufacturing sector performance, attributable to increasing support for manufacturing, fairly improved environment and the efficacy of the prevailing economic policies aimed at stabilising the economy.

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