Manufacturers Generate N1.67trn From Exports In 9 Months
Between January and September 2019, manufacturers earned a total of N1.67tn through exports of manufactured products.
The N1.67tn was arrived at based on compilation of figures from the foreign trade in goods statistics report which was obtained from the National Bureau of Statistics.
A breakdown of the amount showed that manufacturers earned about N462.33bn in the first quarter of last year.
The amount, according to the report, represents 10.2 per cent of the total export for the nine-month period.
Out of the N462.33bn, the sum of N312.8bn was earned in January while February and March fetched N98.41bn and N51.12bn respectively.
A further analysis of the report showed that manufactured goods such as vessels and other floating structures valued at N202.6bn were exported to Angola in the first quarter.
In addition, refrigerated vessels worth N69.6bn were exported to Ghana, while other light vessels valued at N12.6bn were also exported to the United States during the period under review.
For the second quarter of last year, manufacturers’ earnings dropped by N355.43bn from the first quarter figure of N462.33bn to N106.9bn.
A breakdown of the N106.9bn showed that goods valued at N32.65bn was exported by manufacturers in May, N62.36bn in June while July had N11.08bn.
During the second quarter, vessels and other floating structures valued at N27bn, N12.6bn and N3.3bn were exported to Cameroon, Argentina, and Namibia respectively.
Other floating structures worth N7.7bn were exported to the United Arab Emirates, according to the NBS data.
In addition, other cigars, cheroots, cigarillos and cigarettes with other tobacco products worth N2bn were exported to the Niger Republic.
For the third quarter of 2019, the amount earned by manufacturers from exports rose from the second quarter figure of N106.9bn to N996.78bn.
A further analysis of the report showed that goods worth N162.93 were exported in July, while August and September recorded N66.98bn and N766.87bn respectively.
It said this was driven by exports of cable sheaths of iron and steel valued at N750.3bn exported to Ghana.
The report added that floating and submersible drilling platforms were exported to Ghana and valued at N117.4bn.
It put vessels and other floating structures for breaking up exported to Cameroon at N41.7bn.
The Manufacturers Association of Nigeria said the infrastructural deficit had continued to impede industrial growth and denied the country the much-needed foreign direct investment.
It also said that multiple levies and taxes and other anti-investment policies of the agencies of the government must be addressed in the new year.
The Director-General, MAN, Mr Segun Ajai-Kadir, noted that there appeared to be challenging times ahead, given the current policies of the current regime and its objectives.
He argued that though the government appeared to be aware of the issues, there were policies that had been adopted that would have negative impact on the manufacturing sector.
MAN noted that with a growth rate that might not go beyond two per cent in the year, a double-digit inflation rate, interest-rate regime that might leave the rates of borrowing by an average manufacturer unchanged and deepening forex restrictions in the face of inadequate local supply of raw materials, the manufacturing sector might not show any appreciable improvement from its current level.
He said, “One can only look at 2020 within the context of current policies of government and its stated objectives in the new year. In this regard, there appears to be challenging times ahead, but with the certainty that government appears to be aware of the issues and amenable to tackling them.
“There are, however, policies that have been adopted that would negatively impact on the manufacturing sector in the year 2020.”
For there to be significant impact on the manufacturing sector, he said, “There has to be a major boost in power supply, accelerated repair of roads, particularly in the industrial areas, and immediate amelioration of the hellish state of the Lagos ports.”