Manufacturing declined by N78bn in Q1 2019 - NBS

Manufacturing sector recorded a decline of about N77.92bn in output in the first quarter of this year, figures obtained from National Bureau of Statistics have revealed.

An analysis of Gross Domestic Product report prepared by NBS revealed that the sector recorded a total output of N1.69tn as of the end of the fourth quarter of 2018.

However, the level of productivity of the sector dropped by N77.92bn from the fourth quarter figure of N1.68tn to N1.61tn.

The sector had been badly hit by the harsh operating environment which took its toll on the profit margins of many companies operating in that segment of the economy.

The report said there were 13 sub-sectors that make up the manufacturing sector.

Out of the 13 sub-sectors, only four recorded an increase in economic performance between December and March this year, while nine sub-sectors recorded a decrease in productivity.

The four sub-sectors that recorded increase in economic performance are cement from N145.97bn in December to N152.41bn; wood and woods products from N51.59bn to N53.21bn; non-metallic products from N59.34bn to N60.43bn; and motor vehicle assembly from N7.14bn to N8.69bn.

The nine sectors that recorded decline in productivity are oil refining from N40.03bn to N14.67bn; food, beverage and tobacco from N387.98bn to N359.51bn; paper products from N14.13bn to N13.35bn; chemical and pharmaceutical products from N40.34bn to N37.07bn.

The rest are plastic and rubber products from N58.86bn to N58.17bn; electrical and electronics from N1.3bn to N930m; iron and steel from N46.19bn to N40.71bn and other manufacturing from N78.06bn to N72.61bn.

The decline in productivity for the manufacturing sector is not in line with the objectives of government for the sector as contained in the Economic Recovery and Growth Plan.

 

Punch

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