MAN production value hits N3.99tn in H1 2022

According to the Manufacturer Association of Nigeria, manufacturing value increased by 9.0% to N3.99 trillion in the first half of 2022.

According to the association’s executive summary of the H1 2022 Economic Review report, which was made available to RNN on Friday, factory output in the manufacturing sector increased by N0.33 trillion during the period, from N3.66 trillion in the first half of 2021 to N3.99 trillion in the first half of 2022 (year over year).

According to the report, “it also rose by N0.26 trillion, equivalent to 7.0 percent (half-on-half), when compared to N3.73 trillion attained in the second half of 2021.”

The research explained that, with the exception of the food sub-sector, which has experienced a substantial level of backward integration, production was significantly constrained by a lack of foreign exchange for the importation of raw materials that are not available in the nation.

According to the report, “The N10 rise in the excise charge on non-alcoholic drinks severely hampered production in that sector.” The implementation of the National List’s migration to Chapter 99 of the ECOWAS Common External Tariff (CET) is also plagued by bureaucracy and complexity among government entities, which causes delays in the delivery of raw materials to industries.

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The basic metal group, it continued, is severely challenged by the reduction in duty on the annealed cold roll from 45% to 5%, which rendered domestic production of the good uncompetitive.

The paper revealed how the suspension of motorbikes in specific places across states, particularly in Lagos, had a significant impact on the motorcycle assembly sub-sector.

More specifically, the productivity of the paper goods sub-sector was negatively impacted throughout the review period by the rise in the duty on paper from 5% to 20%.

Additionally, the nation’s manufacturing industry expanded by 0.8% in the first quarter of the year. The disruption of global supply and rising commodity prices, which were the results of the Russian-Ukrainian war, continue to be the manufacturing sector’s downside threats.