BY VICTORIA ONU, ABUJA
Despite the harsh operating environment in Nigeria which had made some firms in the manufacturing sector move to other neighboring countries, the earnings of manufacturers recorded a significant increase during the third quarter of this year, The Point can report.
A vast majority of Nigerian manufacturers have expressed concerns about the prevailing operating environment, noting that multiple taxation and over-regulation are hurting the productivity of their enterprises.
But despite these concerns, analysis of the Gross Domestic Product report for the third quarter of this year showed that the sector recorded improved performance as against the second quarter of this year.
For instance, between July and September this year, the total monetary value of the manufacturing sector’s output was put at N7.03trn.
The monetary output of N7.03trn represents an increase of 27.12 percent when compared to the N5.53trn recorded in the second quarter.
There are 13 sub-sectors that make up the manufacturing sector. Out of these 13 sub-sectors, 12 recorded increase in economic performance during the reviewed period, while one sub-sector recorded decrease in productivity.
The 12 sub-sectors that recorded increase in economic performance are cement which rose from N1.12trn to N1.71trn; food, beverage and tobacco which rose from N1.93trn to N2.29trn; textile apparel and footwear from N1.17trn to N1.35trn.
Also, the wood sub-sector rose from N107.58bn to N126.57bn; pulp, paper and paper products from N70.72bn to N96.47bn; chemical and pharmaceutical products from N149.28bn to N168.53bn; nonmetallic products from N346.17bn to N448.44bn; plastic and rubber products rose from N145.34bn to N199.18bn; while electrical and electronics; basic metals; motor vehicle and other manufacturing grew from N3.76bn, N96.99bn, N255.31bn and N129.44bn to N4.85bn, N143.3bn, N255.29bn and N225.79bn respectively.
The only sub-sector that recorded decline in productivity is that of oil refining which dropped from N7.81bn to N6.76bn.
Speaking on the economic output, the immediate past President, Abuja Chamber of Commerce and Industry, Adetokunbo Kayode, said that to unlock the potentials of the manufacturing sector, the government must continue to collaborate with the private sector to stimulate the manufacturing sector.
He also said the attention currently being paid to crude oil should be reduced while efforts should be focused on developing the crude oil value chain.
He said, “Our GDP will continue to go up if we continue to place less emphasis on oil. Why did we go into recession? It was because the price of crude oil was going down. It’s not that we are not productive as a country but we need to take our eyes away from crude oil. We need to emphasize opportunities, open new doors.
“We are not a poor country because we are potentially rich. We are depending on crude oil without focusing on the oil value chain; we import diesel, petrol and petrochemicals.
“This is unbelievable. What is difficult in turning these into opportunities for people? Let’s leave oil where it is, develop the value chain and stimulate our manufacturing sector.
“It is very important that the government continues to engage with the private sector to enhance our economic development.”
Also speaking, an economist, Chijioke Ekechukwu, said that the government needs to step up its diversification agenda with credit policy for manufacturers.
He said while the government has been pursuing economic diversification since the inception of this administration, the results have not been too impressive based on the recent GDP report released by the National Bureau of Statistics.
To simulate the economy, Ekechukwu said there was need for more reforms to further reduce the cost of doing business and interest rate.
Ekechukwu said, “In the area of growing the non-oil sector, we are yet to make any significant effort that could take the country to the path of sustainable growth.
“The non-oil sector on its own has the capability to drive the economy in case the price of oil that is not within our control starts declining.
“So, there is a need to put in more efforts in agricultural development, boosting the export market and the manufacturing sector.”
