This, translates to 3.79 per cent increase when compared
with -1.51 percent recorded in the corresponding quarter of 2020.
Engr Mansur Ahmed, President, MAN, made this known in the
association’s second half of 2021 economic report released on Thursday in Lagos.
Ahmed attributed the positive performance of the
manufacturing sector in the period under review to the palliative measures
imposed by government to salvage the sector from the effect of COVID-19
pandemic.
He, however, noted that the sector’s performance contracted
by 2.01 per cent in comparison to 4.29 per cent recorded in the preceding
quarter of 2021.
“Nevertheless, to improve and reposition the sector back as
the engine of growth, there is need to maintain those policies and formulate
others that will encourage investments and boost economy growth,” he said
He said such investment would also boost the stability of
exchange rate, development of local raw materials, protection of lives and
property, among others.
Ahmed revealed that electricity supply from the national
grid improved in the second half of 2021.
He noted that average daily supply of electricity was stable
at 11 hours and power outage, three times per day respectively.
Consequently, the MAN boss said expenditure on alternative
energy source dipped to N45.04 billion from N57.75 billion recorded in the
corresponding half of 2020; indicating N12.71 billion or 22.0 per cent decline
over the period.
Ahmed said in the second half of 2021, the average cost of
borrowing in the sector from the commercial banks was 24.0 per cent against 22
per cent of the corresponding half in 2020, and 19 per cent of the preceding
half.
Also, cost of capital in the sector averaged 21.5 per cent
in 2021 as against 20.8 per cent of 2020.
“Consequently, cost of loanable funds maintained a key
challenge to manufacturing notwithstanding the monetary easing stance of the
Central Bank of Nigeria,” he said.
Ahmed said in Q4 2022, Nigeria’s trade value stood at N11,
707.20 billion, representing 11.79 per cent increase when compared to
N10,472.42 billion recorded in the preceding quarter of 2021.
He said the development resulted to 74.71 per cent increase
compared with N6701.05 billion recorded in the Q4 2020.
He said the country’s import value was N5940.58 billion,
indicating 11.33 per cent increase when compared with N5335.86 billion recorded
in the preceding quarter of 2021.
“It meant a 69.41 per cent increase in comparison with
N3506.55 billion recorded in the corresponding quarter of 2020.
“Similarly, the export value of N5766.62 billion recorded in
the period under review revealed 12.27 per cent increase when compared with
N5136.56 billion recorded in the preceding quarter of 2021,” he explained.
Ahmed said the figure also showed that the export value
increased by 80.52 per cent in comparison with N3194.50 billion recorded in
corresponding quarter of 2020.
The MAN President stated that there was noticeable
improvement in the statistics of foreign exchange flows released by Centra Bank
of Nigeria (CBN) in the third quarter of 2021.
He said the situation was due to additional Special Drawing
Right (SDR) allocation, proceeds from the Euro bond sales and increase in
non-oil receipts.
“The 16831.30 million dollars recorded in the third quarter
indicates an increase of 158.43 per cent when compared to 6512.89 million
dollars recorded in the preceding quarter.
“It also revealed 141.45 per cent increase in comparison
with 6971.01 million dollars recorded in the corresponding quarter of 2020.
“The foreign exchange outflow dropped to 7981.37 million
dollars in the third quarter of 2021 indicating 10.57 per cent decrease when
compared with 8924.85 million dollars recorded in the second quarter of 2021.
“The decrease was due to the stoppage of sales to BDC
operators by CBN.
“However, the data showed an increase of 14.76 per cent when
compared with 6954.18 million dollars recorded in the third quarter of 2020,”
he said.
Ahmed said the year 2021 provided the opportunity to redress
the staggering negative impact of COVID-19 Pandemic on global, national levels.
According to him, the economy leapt from -1.94 per cent in
2020 to 3.38 per cent in 2021, just as the manufacturing sector growth increased
from -2.85 per cent in 2020 to 3.37 per cent in 2021.
However, he said in spite of the improved performance of the
manufacturing sector during the year, it was still far beyond its potential
growth and contribution to national output due to the challenges confronting
the sector.
The MAN President urged the government to create more
incentives for investment in the development of raw materials locally through
the Backward Integration and Resource based industrialisation initiatives.
“We recognise an urgent need for investment and production
of Active Pharmaceutical Ingredients (API) in the country; this should be
adequately incentivised to encourage significant private investments.
“Government must improve ports administration and resume the
implementation of the Export Expansion Grant (EEG), which significantly
supported export in Nigeria during the peak of implementation,” he said.
(NAN)