Under Buharinomic policies, Nigeria’s Manufacturing sector contracts by 0.77% , despite expanded economy as unemployment surges

    Cotton-sorting machines are seen at a closed-down textile factory in Kaduna, Nigeria November 3, 2016. REUTERS/Afolabi Sotunde SEARCH "NIGERIA TEXTILE" FOR THIS STORY. SEARCH "WIDER IMAGE" FOR ALL STORIES.

    Even though Nigeria’s economy accelerated to 2.55 percent in 2019, the manufacturing sector grew by just 0.77 percent in full-year 2019, sliding reasonably from 2.09 percent in 2018, though some improvement from and -0.21 percent contraction in 2017.
    According to GDP figures released by the National Bureau of Statistics (NBS) on Monday morning, the Manufacturing sector grew by 1.24 percent in Q4 2019 from 1.10 percent in Q3 2019 but still less than 2.35% in Q4 2018.
    The sector contributed 8.74 percent to overall real GDP in Q4 2019, lower than the 8.86 percent recorded in the fourth quarter of 2018 but the same as 8.74 percent recorded in the third quarter of 2019.

    Nigeria’s Gross Domestic Product (GDP) grew by 2.55 percent (year-on-year) in real terms in the fourth quarter of 2019, representing the highest quarterly growth performance since the 2016 recession.
    The NBS said this shows a 0.17 percent points increase from 2.38 percent in the fourth quarter of 2018 and also an increase of 0.27 percent points when compared with the third quarter of 2019.

    Overall, this resulted in an annual 2019 real growth rate of 2.27 percent, compared to 1.91% in 2018. Quarter on quarter, real GDP growth was 5.59 percent.
    For full-year, manufacturing real contribution was 9.06 percent in 2019 as against 9.20% contributed in 2018, the NBS said.
    The Manufacturing sector comprises thirteen activities: Oil Refining; Cement; Food, Beverages and Tobacco; Textile, Apparel, and Footwear; Wood and Wood Products; Pulp Paper and Paper products; Chemical and Pharmaceutical products; Non-metallic Products, Plastic and Rubber products; Electrical and electronic, BasicMetalandIronandSteel; motor vehicles and Assembly; and other manufacturing.
    Oil Refining under the manufacturing sector contracted by -25.71 percent in Q4 2019 from -30.77 percent in Q3 2019 and 33.60 percent in Q4 2018.
    Also, it contracted by -31.39 percent in full-year 2019 from – 3.97 percent in 2018 and -27.70 percent in 2017, according to the NBS numbers.
    The NBS reported Nominal GDP growth of the sector in the fourth quarter of 2019 at 26 percent (year-on-year), -7.27 percent points lower than figures recorded in the corresponding period of 2018 (33.57%) and -13.40 percent points lower than the preceding quarter’s figure of 39.69 percent. Quarter on quarter, growth was recorded at –3.61 percent, and 34.73 percent for full-year 2019.
    The contribution of Manufacturing to Nominal GDP in Q4 was 11.37 percent, higher than the figure recorded in the corresponding period of 2018 at 10.11% but lower than the third quarter of 2019 at 12.34%.
    thanthethirdquarterof2019 at 12.34 percent.
    But annual contribution was was reported at 11.64 percent in 2019, higher than 9.75 pecent growth of 2018.

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    Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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