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BUSINESS & ECONOMYCOVERMANUFACTURINGNEWSNEWSLETTER

Cement, Six Others Boost Manufacturing Sector Growth To N12.2tn

Cement, Six Others Boost Manufacturing Sector Growth To N12.2tn

The cement, food, beverage and tobacco companies are the biggest contributors to Nigeria’s manufacturing sector in the first half of this year, according to the National Bureau of Statistics (NBS).

While the cement subsector grew from N2 trillion to N2.5 trillion, the food, beverage and tobacco recorded an output N4 trillion from N3.8 trillion.

Overall, NBS Gross Domestic Product (GDP) report stated that the manufacturing sector recorded a total output of N12.2 trillion in the first half of the year.

 The total output of N12.2t trillion for H1 2021 represents an increase of N1.1 trillion when compared to the N11.1 trillion recorded in the second half of 2020.

 Out of the 13 subsectors of the manufacturing sector, seven recorded positive economic performance between H2 2020 and H1 2021, while six subsectors experienced a decline in productivity.

 The textile, apparel and footwear grew from N2.6 trillion to N3 trillion; and wood and wood products, from N233.9 billion to N235.1 billion.

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Other subsectors are pulp, paper and paper products, from N146.2 billion to N162 billion; non-metallic products, from N624 billion to N752.5 billion; and motor vehicles and assembly, from N274 billion to N498 billion.

 The oil refinery subsector recorded a huge decline in productivity within the period under review, from N32.5bn to N13bn.

The other five subsectors that recorded decline in output are chemical and pharmaceutical products, from N288.9bn to N275.3bn; plastic and rubber products, from N351.1bn to N307.4bn; electrical and electronics, from N8.3bn to N7.2bn; basic metal, iron and steel, from N250bn to N200.9bn; and other manufacturing, from N392.7bn to N300.4bn.

 The performance of the manufacturing sector shows resilience amid the major challenges in the sector such as limited access to credit and financial services, poor infrastructure and unreliable power supply that forces businesses to rely on generators, thus increasing their input costs and reducing their overall competitiveness and profitability.

About Author

Ife Ogunfuwa is an award-winning reporter who is versed in reporting business and economy, technology, gadgets reviews, telecoms, tax, and business policy review, among others. She loves telling stories behind the numbers. She has professional certifications in business and financial reporting. You can reach her via – [email protected]

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