Manufacturing Sector GDP Growth Declines by 90.11% in Q3 2024
Nigeria’s manufacturing sector experienced a staggering decline in growth, as its year-on-year (YoY) nominal GDP growth plummeted by 90.11% in the third quarter of 2024.
This is according to the latest Gross Domestic Product (GDP) report by the National Bureau of Statistics (NBS).
The sector’s growth fell from 36.59% in Q3 2023 to a mere 3.62% in Q3 2024, reflecting significant challenges across its sub-sectors and highlighting the urgent need for remedial measures.
Despite recording a quarter-on-quarter growth of 31.67% in nominal terms, the sector’s contribution to nominal GDP dropped to 14.30% in Q3 2024, down from 16.18% in the same period the previous year.
The GDP report read: “Nominal GDP growth of the Manufacturing sector in the third quarter of 2024 was recorded at 3.62% (year-on-year), 32.97% points lower than the figure recorded in the corresponding period of 2023 (36.59%) and 1.72% points higher than the preceding quarter figure of 1.91%.
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“Quarter-on-quarter, growth of the sector was recorded at 31.67% during the quarter. The contribution of Manufacturing to Nominal GDP in the third quarter of 2024 was 14.30%, lower than the figure recorded in the corresponding period of 2023 at 16.18% and higher than the second quarter of 2024 at 12.68%.”
Real GDP growth in the manufacturing sector was 0.92%, marginally higher than the 0.48% recorded in Q3 2023 but lower than the 1.27% achieved in Q2 2024.
The sector’s real contribution to GDP stood at 8.21%, a decline from 8.42% in Q3 2023 and 8.46% in Q2 2024.
The GDP report noted: “Real GDP growth in the manufacturing sector in the third quarter of 2024 was 0.92% (year-on-year), higher than the same quarter of 2023 and lower than the preceding quarter by 0.44% points and 0.35% points respectively.
“The growth rate of the sector on a quarter-on-quarter basis stood at 6.74%. The Real contribution to GDP in the 2024 third quarter was 8.21%, lower than the 8.42% recorded in the third quarter of 2023 and lower than the 8.46% recorded in the second quarter of 2024.”
The manufacturing sector comprises thirteen activities: Oil Refining; Cement; Food, Beverages and Tobacco; Textile, Apparel, and Footwear; Wood and Wood Products; Pulp Paper and Paper Products; Chemical and Pharmaceutical Products; Non-metallic Products; Plastic and Rubber Products; Electrical and Electronic; Basic Metal and Iron and Steel; Motor Vehicles and Assembly; and Other Manufacturing.
