Investments in Nigeria’s manufacturing sector hit N4 trillion in 4 years
Investments in Nigeria’s manufacturing sector of the economy has increased to N4.63 trillion over a period of four years.
The Manufacturers Association of Nigeria (MAN), in its Executive Summary of the second quarter of 2017, noted that at the end of 2017, estimated cumulative manufacturing investments from 2013 to 2017 stood at N4.63 trillion, based on data generated from the survey conducted by MAN over the period.
The Association’s report said that at the end of the second half of 2017, manufacturing investment declined to N176.69 billion from N448.94 billion recorded in the corresponding period of 2016; thereby indicating N272.25 billion or 60.6 percent decline over the period. “It also declined by N152.59 billion or 46.3 percent when compared with N329.28 billion recorded in the preceding half”, the report said.
The manufacturing investment according to MAN totalled N508.98 billion in 2017 as against N614.55 billion recorded in 2016; thereby indicating N105.57 billion or 17.2 percent decrease over the period.
A further breakdown of the figures in the period under review, showed that Plant and Machinery ranked highest with investment worth N46.21 billion; trailed by Land and Building at N40.94 billion; Motor Vehicle followed with N35.19 billion worth; while Furniture & Equipment came next with investment worth N31.09 billion. Similarly Assets under Construction followed with investment worth N23.25 billion. It added, that “Sectoral group analysis shows that the highest proportion of total manufacturing investment in the period under review (41.2 percent or N72.79 billion) went to Food, Beverage and Tobacco sector. Investment in the sector stood at N72.79 billion in the period as against N72.05 billion of the corresponding period in 2016; thereby indicating N0.74 billion or 1.0 percent increase over the period.
“It however declined by N18.28 billion or 20.0 percent when compared with N91.07 billion of the preceding half. Investment in the sector totaled N163.86 billion in 2017 as against N221.27 billion in 2016; thus indicating N57.41 billion or 25.9 percent decline over the period.”
Analysis based on industrial zones shows that in the period under review, 29.9 percent or N51.11 billion worth of investment went to Ogun zone; 24.0 percent or N42.46 billion went to Ikeja zone; and 20.0 percent or N35.33 billion went to Apapa zone.
Investment in Ogun zone fell to N51.11 billion in the period under review from N313.62 billion recorded in the corresponding half of 2016; thus indicating N262.51 billion decline over the period. It also declined by N42.65 billion or 45.5 percent when compared with N93.76 billion of the preceding half.
However, investment in the zone totalled N144.87 billion in 2017 as against N368.17 billion recorded in 2016; thus indicating N218.3 billion increase over the period.
By Bimbola Oyesola, Sunnewsonline.com
