The Lagos Chamber of Commerce and Industry (LCCI) has analyzed the nature of this capital inflow and found that it primarily comprises loans and bonds. Dr. Chinyere Almona, FCA, the Director General of the LCCI offered these insights that underscores the challenges faced by the manufacturing sector, as businesses seek to address short-term financial obligations amidst a backdrop of slowing economic activity.
She revealed that the National Bureau of Statistics (NBS) has revealed a remarkable 88.16% surge in capital investment within Nigeria’s manufacturing sector during the first half of 2023, reaching an impressive $861.16 million. This marks a substantial increase from the $457.67 million recorded in the same period in 2022, Almona stressed.
Notable examples, she said include the Dangote Group and Tolaram, both raising substantial funds through N300 billion bonds and $38 million, respectively.
“The surge in capital inflow can be attributed to a combination of factors, including the relatively low base of capital investment in the previous year.
Additionally, investor sentiment has been positively influenced by two significant reforms initiated in the early stages of the new administration: the removal of fuel subsidies and exchange rate harmonization.
DG LCCI added that this influx of capital in the first half of 2023 is expected to have a notable impact on the manufacturing sector, particularly benefiting companies striving to overcome current challenges, meet short-term financial obligations, and navigate a dip in consumer demand.
“Despite the challenging business environment, the manufacturing sector has displayed a degree of resilience, exhibiting growth rates of 1.61% and 2.20% in the first and second quarters of 2023, respectively.
