Nigerian Manufacturing Sector Defies Odds, Records 1.5% Growth Amidst African Contraction


Despite facing numerous challenges, the manufacturing sector in Nigeria exhibited resilience by recording a growth of 1.5 percent in the last quarter of 2023, according to data from the UN Industrial Development Organization (UNIDO). This growth contrasted with a contraction of -0.7 percent in manufacturing output across Africa during the same period.

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UNIDO highlighted Nigeria and South Africa as the only countries in Africa to experience growth in the manufacturing sector during the quarter, with Nigeria recording a growth rate of 1.5 percent. In contrast, Senegal (-5.5 percent) and Tunisia (-0.6 percent) faced reductions in manufacturing output.

The report from UNIDO indicated that manufacturing in Asia and Oceania saw the highest year-on-year growth rate of 3.4 percent in Q4 2023. Conversely, manufacturing output in Africa and Northern America experienced negative growth rates of -0.7 percent and -0.5 percent year-on-year, respectively.

The manufacturing sector globally faced challenges such as subdued demand due to high global inflation, supply chain disruptions, and regional conflicts. Additionally, factors like the shortage of skilled workforce and frequent natural disasters further compounded the challenges faced by the sector.

While most regions saw production losses in the manufacturing sector during Q4 2023, Asia and Oceania remained the exception with a manufacturing expansion of 3.4 percent.

Meanwhile, the UN Trade and Development (UNCTAD) attributed the increasing divestment of multinationals, particularly from developing economies, to factors such as accelerated automation, political shifts towards interventionism, and the rise of the services sector in attracting investment. FDI in manufacturing witnessed a significant downturn, averaging an annual decline of over 10% in the three years following the outbreak of the pandemic.

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Godwin Okafor
Godwin Okafor
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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