MAN Production Value Hits N3.99trn In H1, 2022
The Manufacturer Association of Nigeria (MAN) has said that its production value has recorded a 9.00 per cent increase to N3.99tn in the first half of 2022.
The Executive summary of H1 2022 Economic Review report of the association made available on Friday, showed that the manufacturing sector factory output value increased to N3.99tn in the first half of 2022 (year-on-year) up from N3.66tn recorded in the same half in 2021. thus, indicating N0.33tn rise during the period.
“It also increased by N0.26tn equivalent to 7.0 per cent (half-on-half) when compared with N3.73tn achieved in the second half of 2021,” the report said.
The report explained that production was majorly limited by a lack of forex for the importation of raw materials that are not available in the country in all the sectoral groups, except for the food sub-sector which has undergone a significant level of backward integration.
The report reads in part, “The N10 increase of excise duty on non-alcoholic drinks grossly affected production in that segment of the sector. In addition, the implementation of migration of the National List to Chapter 99 of ECOWAS Common External Tariff (CET) is perverse with bureaucracy and complexities among government agencies, leading to delay in getting raw materials to factories.”
It added that the basic metal group is heavily challenged by the lowering of duty to Annealed Cold roll to 5 per cent from the previous 45 per cent, which made domestic manufacturing of the product uncompetitive.
The report explained that the motorcycle assembly sub-sector was severely affected following the suspension of motorcycles in some areas across states, particularly in Lagos.
“Moreso, the increase in the duty of paper from 5 per cent to 20 per cent adversely affected productivity in the paper products sub-sector in the period under review. “
The country’s manufacturing sector also grew by 0.8 per cent in the first quarter of the year. However, the down risks in the manufacturing sector remain the disruption of global supply and the increasing commodity prices, which were the off-shoots of the Russian-Ukrainian war.
