Nigeria’s manufacturing sector creates 1.62m in 2018 –MAN survey

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Surveys conducted by Manufacturers Association of Nigeria (MAN) have revealed that an estimated 1.62 million historical cumulative jobs were created in the manufacturing sector in 2018. The association explained that new jobs in the first half of 2018 declined by 35 and 937 jobs from 9,355 jobs created in the same half of 2017 and 10,257 jobs created in the preceding half respectively.

The Food, Beverage and Tobacco sector accounted for most of the jobs created in the manufacturing sector. Particularly, the sectoral group created 2,999 jobs, closely followed by Domestic/ Industrial Plastic & Rubber, 1,374 jobs, Basic Metal, Iron & Steel, 1,229 jobs and Chemical & Pharmaceutical group, 1,209 jobs in the period. According to the report, the inability of the sub-sectors in the industrial sector to create more jobs in the period under review was caused by government’s policy somersaults, which impaired growth and development.

However, total job loss increased by 838 in the period under review from 5,212 jobs created in the preceding half, the report stated. The report also showed that capacity utilization in the manufacturing sector stood at 54.6 per cent in the first half of 2018, indicating 0.43 and 4.64 percentage points decline from 55.03 per cent recorded in the same half of 2017 and 59.24 per cent of the preceding half.

The decline in manufacturing capacity utilisation in the period under review can be ascribed to the general low macroeconomic ambience in the country. Analysis of sectoral group performance indicated that capacity utilisation declined in the entire groups with the exception of Motor Vehicle and Miscellaneous Assembly in the first half of 2018.

The association stressed that capacity utilisation stood at 58.88 per cent in Food, Beverage and Tobacco group, representing 5.1 and 3.62 percentage points decline from 63.98 per cent recorded in the same half of 2017 and 62.5 per cent recorded in the preceding half. It added that capacity utilisation in Textile Apparel & Footwear group also declined to 50.17 per cent in the first half of 2018 by 2.81 percentage point from 52.98 per cent recorded in the corresponding half of 2017. Also, it stressed that capacity utilisation in the group fell by 7.03 percentage point from 57.2 per cent recording in the preceding half. According to MAN, capacity utilisation in Motor Vehicle and Miscellaneous Assembly group, however, increased to 56.38 per cent in the period under review by 11.05 and 2.88 percentage points from 45.33 per cent of the same half of 2017 and 53.5 per cent of the preceding half respectively. Across industrial zones, there were similar marginal declines in capacity utilisation as the case for the sectoral group in the period under review safe for Anambra/Enugu zone which recorded marginal increase. In Ikeja industrial zone (the manufacturing hub of Nigeria) capacity utilization declined by 4.42 percentage point in the first half of 2018 from 59.6 per cent recorded in the same half of 2017 and by 8.02 percentage point from 63.2 per cent of the preceding half. In Ogun zone (the investment hub of the country), capacity utilization declined by 6.54 percentage point in the first half of 2018 from 68.7 per cent of the preceding half, but showed an increase of 5.86 percentage point from 56.3 per cent recorded in the same half of 2017.

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Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

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