The total value of goods produced by manufacturers in the first half of 2014 went down by N271billion on account of power supply hiccups and insecurity occasioned by the activities of ‘Boko Haram’ terrorists in the North-eastern part of the country.
These dark clouds impacted on local manufacturers, as their production value fell from N353.20 billion recorded in the first half of 2013 to N270.85 billion in the first half of 2014.
BusinessDay’s analysis based on latest data from the Manufacturers Association of Nigeria (MAN), shows that the fall represents a 44 percent reduction from N483.52 billion recorded in the second half of 2013.
MAN explained that the situation did not imply that there was a lull in the Nigerian economy, but was a reaction to some challenges posed by some indices which dogged manufacturers within the period under review.
“This could be attributed to power outages, which have continued to produce greater effect on Small and Medium-scale Enterprises (SMEs) and the internal strife, linked to religious uprising in the northern parts of the country also contributed to lower production value, as markets were curtailed due to sales and movement challenges in some parts of the country,” MAN stated.
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On a sectoral basis, the food and beverages sub-sector rose 28.19 percent, from N64.40 billion recorded in the first half of 2013 to N82.56 billion in the first half of 2014, while the production value in this sector in the second half of 2013 was N83.71 billion.
Similarly, the data shows that in the first half of 2014, value in the textile, apparel and footwear sub-sector rose to N6.49 billion, as against N1.04 billion recorded in the first half 2013, while the value in the second half of 2013, in the sector, was N1.26 billion.
Also the value in the first half of 2014 in the chemical and pharmaceutical sub-sector rose to N25.06 billion from N16.64 billion reported earlier in the first half of 2013, representing 50.65 percent, while that of the second half of 2013 was N21.63 billion.
In the non-metallic products sector, which is dominated by the cement segment, output fell steeply by 40 percent to N86.61 billion in the first half of 2014 as against N143.86 billion in the first half of 2013.
Apart from insecurity and power, however, some analysts have attributed squabbles over grading and slower consumer response to products as some other possible causes of this declension.
But in the basic metal, iron and steel sub-sector, value rose by 8.4 percent to N52.63 billion from N48.57 billion recorded in the first half of 2013 within the period under review.
However, manufacturing value in the electronics and electrical sub-sector declined 62.71 percent to N3.76 billion in the first half of 2014 from N10.08 billion in the first half of 2013, and the value in the second half of 2013 in this sub-sector was N9.07 billion.
MAN explained that, “indication from the survey, as well as, interactions with the operators, had been that of the expression of optimism before the end of the year.”
Meanwhile, in terms of industrial zones, value in the first half of 2014 in Edo/Delta axis was N1.24 billion, while that of Imo/Abia recorded a sight higher value at N1.15 billion.
Oyo/Ondo/Osun/Ekiti’s production value was N3.06 billion, but that of Kano/Sharada/Challawa peaked at N31.87 billion.
Production value was highest in Ikeja, Lagos State, at N125.68 billion, while that of Ogun was N59.20 billion.
In Bauchi/ Benue/Plateau industrial zone, production value was N30.40 billion within the period, while that of Anambra/Enugu was N5.02 billion.
The production value was just N342 million in Apapa, Lagos State and it is the least among them. Some analysts attributed this poor performance to port and road gridlocks that dogged Apapa within the period under review.
The value in Kaduna was N3.48 billion in the first half of 2014, while that of Rivers industrial zone had N709 million.
MAN rationalised that Rivers performance could be linked to several constraints in the area, as well as, the recent effort by the Federal Government (FG) to galvanise some companies that have hitherto relocated, but are reconsidering coming back to Nigeria.
