Manufacturing Sector Return To Profitability, Grew by 0.14 percent in Q4 of 2017-MAN

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The Manufacturers Association of Nigeria (MAN) said manufacturing sector output grew by 0.14 percent in the fourth quarter of 2017  up from -2.54 percent recorded in the corresponding quarter of 2016;  thereby by indicating 2.68  percentage point increase  over the  period.   It also increased by 2.99 percentage point when compared with -2.85 percent growths recorded in the preceding quarter.

MAN in its Executive Summary of Second Half of 2017 released showed the manufacturing sector’s Fund Direct Investments (FDI) increased to US$378.00 million in the fourth quarter of 2017 from US$314.00 million of the corresponding period of 2016; thereby indicating US$64.00 million or 20.47 percent increase over the period.  It also increased by US$116.22 million or 99.3 percent from the US$117.00 million recorded in the preceding quarter.

The report stated that manufacturing in the industrial economies also grew by 3.5 percent in the fourth quarter of 2017 as against 3.1 percent growth recorded in the third quarter of the year.   African manufacturing output advanced by 6.4 percent in the quarter although with a 0.1 percentage point slide from 6.5 percent recorded in the third quarter of the year.

“At the end of 2017, estimated cumulative manufacturing investment from 2013 to 2017 stood at N4.63 trillion based on data generated in the survey conducted by MAN over the period.

“In the second half of 2017, manufacturing investment declined to N176.69 billion from N448.94 billion recorded in the corresponding period of 2016; thereby indicating N272.25 billion or 60.6 percent decline over the period.  It also declined by N152.59 billion or 46.3 percent when compared with N329.28 billion recorded in the preceding half.   Manufacturing investment totaled N508.98 billion in 2017 as against N614.55 billion recorded in 2016; thereby indicating N105.57 billion or 17.2 percent decrease over the period.

 

“In the period under review, Plant and Machinery ranked highest with investment worth N46.21 billion; trailed by Land and Building worth N40.94 billion; Motor Vehicle followed next with N35.19 billion worth; Furniture & Equipment came next with investment worth N31.09 billion; and Assets under Construction followed with investment worth N23.25 billion.

“Sectoral group analysis shows that the highest proportion of total manufacturing investment in the period under review (41.2 percent or N72.79 billion) went to Food, Beverage and Tobacco sector.  Investment in the sector stood at N72.79 billion in the period as against N72.05 billion of the corresponding period in 2016; thereby indicating N0.74 billion or 1.0 percent increase over the period.  It however declined by N18.28 billion or 20.0 percent when compared with N91.07 billion of the preceding half. Investment in the sector totaled N163.86 billion in 2017 as against N221.27 billion in 2016; thus indicating N57.41 billion or 25.9 percent decline over the period.

“Analysis based on industrial zones shows that in the period under review, 29.9 percent or N51.11 billion worth of investment went to Ogun zone; 24.0 percent or N42.46 billion went to Ikeja zone; and 20.0 percent or N35.33 billion went to Apapa zone.

 

“Investment in Ogun zone fell to N51.11 billion in the period under review from N313.62 billion recorded in the corresponding half of 2016; thus indicating N262.51 billion decline over the period.  It also declined by N42.65 billion or 45.5 percent when compared with N93.76 billion of the preceding half.   Investment in the zone totaled N144.87 billion in 2017 as against N368.17 billion recorded in 2016; thus indicating N218.3 billion increase over the period.

 

The Caption Photo: The Manufacturers Association of Nigeria (MAN), President, Dr Frank U Jacobs


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