Investment in manufacturing sector improve to N73bn-MAN

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The President, Manufacturers Association of Nigeria (MAN), Engr Mansur Ahmed

A group of over 400 Chief Executive Officers (CEOs) of Manufacturers Association of Nigeria (MAN) comprised of member-companies across the six geo-political zones and Sectoral Groups has said the investment in the manufacturing sector increased in the second half of 2021 to N73.18 billion from N56.44 billion recorded in the corresponding half of 2020; thus, indicating N16.74 billion or 29.7 percent increase over the period. According to the report, it however, increased by N70.96 billion or 49.3 percent when compared with N144.14 billion recorded in the preceding half. Manufacturing investment totaled N217.22 billion in 2021 as against N118.52 billion in 2020.

 

 

MAN further disclosed that the manufacturing investment has been gradually recovering following the return of economic activities as the issues of COVID-19 pandemic are continuously resolved. In the last one year significant investment has been recorded in the Pulp, Paper, Printing & Publishing (6Ps) sector with the establishment of 5 new paper mills that are into recycling of waste papers to produce cartons; there is also the new BUA Group cement factory in Sokoko; and the new African Glass Limited factory that produced glass products., it added. 

 

 

“The Nigerian economy picked up in 2021 after the country exited the 2020 recession in the fourth quarter of 2020. The fourth quarter report of NBS in 2021 revealed the fifth positive growth after the recession, which reflected the return of economic activities in the country.  Although, the data revealed a steady progress, but the impact is not felt as the economy is still struggling with galloping inflationary pressure, rising unemployment rate, exchange rate volatility, surging debt profile amongst others.”

 

 http://www.manufacturersassociation.org

According to the World Bank prediction, the economy was expected to grow by 1.8 percent in 2021 based on the projected recovery of crude oil prices and resumption of economic activities in the global market but the instability in the macroeconomic situation of the country coupled with the incessant insecurity situation in the country threatens the expected result.

 

 

While NBS statistics showed 2021 fourth quarter recorded a fall in GDP growth to 3.98 percent from 4.03 percent recorded in the third quarter of 2021. The data shows that the economy increased by 3.87 point when compared with 0.11 percent recorded in the fourth quarter of 2020 and contracted by 0.05 point when compared with 4.03 percent recorded in the preceding quarter of 2021, it was stressed.

 

“The drop in the recorded growth rate in the third and fourth quarter revealed that the economy grew at a slower pace which is largely due to the base effects of the negative growth recorded in 2020 coupled with the macroeconomic and insecurity instability in the country.

 

Nigerian manufacturers said that this development called for consistent and collective effort to enact and implement policies that will improve economic activities across the productive sectors of the economy.

 

It is also necessary that Government ensure adherence of the citizens to safety measures to control the spread of COVID-19 and other variants of the disease and implement necessary reforms in the health sector to sustain and improve the growth of the country, report said.

 READ ALSO THIS: Unsold manufactured goods dipped to N225bn in H2-MAN

 

 

“The Manufacturing sector recorded a growth rate of 2.28 percent in the fourth quarter of 2021 which revealed an increase of 3.79 point when compared with -1.51 percent recorded in the corresponding quarter of 2020. However, the sector’s performance contracted by 2.01 point in comparison to 4.29 percent recorded in the preceding quarter of 2021.

 

 

The positive performance recorded in the manufacturing sector in year 2021 is attributed to the palliative measures imposed by Government to salvage the sector from the effect of Covid 19 pandemic. Nevertheless, the report stated that to improve and reposition the sector back as the engine of growth, there is need to maintain those policies and formulate others that will encourage investments especially on the stability of exchange rate, development of local raw materials, protection of lives and properties among others.


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