The Economy lethargy impacted negatively on local raw-materials utilization in the manufacturing sector-MAN

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The Manufacturers Association of Nigeria (MAN) said local sourcing of raw-materials in the manufacturing sector slowed in the first half of 2018 with the exception of Motor Vehicle and Miscellaneous Assembly group.

 

MAN in its six months executive summary statement for 2018 released to the media pointed out that this may be adduced to the general sluggishness of the economy and a renewed ability for importation of raw-materials considering the tranquility in the foreign exchange market. Utilization of  local  raw-materials by manufacturers stood at  56.6 percent in the first half of 2018, down by  4.12 and 9.1 percentage points  from 60.72 percent  of the same half in 2017 and 65.7 percent of the preceding half respectively.

 

Furthermore the across sectoral groups, showed local sourcing of raw-materials  in Food, Beverage and Tobacco group  in the first half of 2018 declined by  17.17 and 7.35  percentage points from 79.12 percent  of the same half in 2017 and 69.3 percent of  the preceding half respectively.

 

While in the  Textile  & Wearing Apparel, Carpet, Leather and Leather Footwear group, local sourcing of raw-materials declined by 0.81 percentage  point  in the period from 63.5 percent  recorded in the preceding half, but increased  by 11.43 percentage point from 51.26 percent of the same half of  2017.  Similarly, local sourcing of raw-material in Non-Metallic Minerals Products group declined by 5.12 percentage point from 70.5 percent recorded in the same half of 2017, but increased by 5.46 percentage point from 59.92 percent recorded in the preceding half.

 

“Analysis of local raw-materials utilization by industrial zones shows a general decline with the exception of Rivers zone. Local raw-materials utilization  in Ikeja zone  declined in the first half of 2018 by 9.18 and 10.98 percentage points from 61.4 percent of the same half in 2017  and 63.1 percent of the preceding  half respectively.

“In Ogun zone, utilization of local raw-materials in the period declined by 8.75 and 11.45 percentage points from 66.0 percent of the same half in 2017 and 68.7 percent of the preceding half respectively. In the first half of 2018, local raw-materials utilization in Apapa zone stood at 63.18 percent, representing 5.12  and  7.52  percentage points decline from 68.3 percent recorded in the same half of 2017 and 70.0 percent recorded in the preceding half respectively.

 

“However, local sourcing of raw-materials increased in Rivers zone by 4.91 and 7.92 percentage points from 61 percent of the same half in 2017 and 58 percent recorded in the preceding half respectively.


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