By Yinka Kolawole
The manufacturing sector recorded an aggregate contribution of N32.346 trillion to the Nigerian economy over the past 5 years spanning 2018 to 2022, available statistics have shown.
The sector’s contribution, however, represents just 9.0 percent of the total N358.232 trillion cumulative Gross Domestic Product, GDP, recorded within the period, which analysts say reflects the nation’s weak industrial base.
Findings from the National Bureau of Statistics (NBS) shows the nation’s aggregate economic activities, or the GDP in real terms, within the period stood at N69.797 trillion in 2018; N71.387
trillion in 2019; N70.014 trillion in 2020; N72.393 trillion in 2021; and N74.639 trillion in 2022.
A breakdown of the data shows that the contribution of the manufacturing sector during the period under review was N6.421 trillion in 2018; N6.470 trillion in 2019; N6.292 trillion in 2020; N6.502 trillion in 2021; and N6.661 trillion in 2022, representing 9.20 percent; 9.06 percent; 8.99 percent; 8.98 percent; and 8.92 percent, respectively.
Stakeholders have lamented that infrastructural deficiencies have constituted major constraints to the growth of Nigeria’s manufacturing sector, chief among which is power supply, with most
firms relying on power generators to run seamless operations eventually adding to costs, especially with the escalation in the price of diesel. Other challenges include forex scarcity, difficult access to credit, and the rising cost of imported raw materials, amongst others.
Commenting, President, Nigerian Association of Chambers of Commerce, Industries, Mines and Agriculture (NACCIMA), Ide John Udeagbala, said: “I think that a situation where less than
one-in-ten products produced in the Nigerian economy is the outcome of an industrialised process does not bode well for our economic growth and development objectives. This is because industrialisation is well-established as a pathway to development.
“Although Nigeria can be said to have an advanced services sector, an average manufacturing contribution of 9% to national output (GDP) indicates that we are falling well below our
Also reacting, Director General, Manufacturers Association of Nigeria (MAN), Mr. Segun Ajayi-Kadir, said: “Conceptually, manufacturing is unarguably the backbone of national economic
“It is countries that are able to transform their raw materials into a wide range of furnished
goods and add value that are prosperous. Beyond the role of the sector in the domestic economy, manufactured exports expands the scope of trade, commerce and foreign exchange inflow.
“There is therefore the need to address the binding constraints that have continued to militate against the performance of the manufacturing sector and limited its share of contribution to the GDP.”