Manufacturers Lament Output Drop, Harsh Operating Environment
The Manufacturers Association of Nigeria (MAN) said that manufacturing production decreased from N7.39 trillion in 2021 to N6.67 trillion in 2022, blaming it on the harsh economic environment remarkable of the period.
Speaking at the annual general meeting (AGM) of the Apapa, Lagos branch of the umbrella body of manufacturers, the branch chairman, Frank Onyebu, said that the year 2022 was characterised by a harsh operating environment, record-high inflationary pressure, high-interest rates, multiple taxations, high energy costs, forex scarcity, and shortage of raw materials.
Among other factors which he said stalled production growth during the period were supply shortages, surging material prices, and difficulty in hiring qualified staff.
According to him, many manufacturers exited Nigeria to neighbouring countries in 2022 due to the harsh operating environment adding that many more are planning to leave, and others were hanging on by a thread, hoping for the new administration to turn things around.
Breaking down the declining performance of the sector over the period under review, Onyebu said: “The value of the manufacturing sector’s factory output declined to N2.68 trillion in the second half of 2022 from N3.73 trillion recorded in the corresponding half of 2021.
This represented an N1.05 trillion or 28 percent decline over the period under review. There was also a decline of N1.31 trillion or 32 percent when compared with N3.99 trillion recorded in the preceding half.
“The value of manufacturing production totalled N6.67 trillion in 2022 as against N7.39 trillion recorded in 2021. Manufacturing production was severely affected in the second half of 2022 by the absence of implementation of new capital projects by the government as they focused on the election,” said the branch chairman.
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