By Yinka Kolawole

Capacity utilisation in the manufacturing sector increased by 9.4 percentage points to 58.9 percent in 2021 from 49.5 percent recorded in 2020 as the sector rebounded from the restrictions occasioned by the COVID-19 pandemic.

A report by the Manufacturers Association of Nigeria (MAN) made available to Vanguard also indicated that investment in the sector in the second half of 2021 (H2 2021) was 6.6 percentage points higher at 59 percent when compared to 52.4 percent recorded in the first half of the year (H1 2021).

The MAN’s report also stated: “There was increased capacities in the paper subsector brought in by five new paper mills that are into recycling of waste papers to produce cartons. Also are the additional capacities as BUA Group introduced a cement factory in Sokoto and the new African Glass Limited factory that produced glass products”.

Analysis of the sectoral expansions shows that manufacturing capacity utilisation increased in almost all the groups, except in the  non-Metallic Mineral  subsector.

Capacity utilisation in the Food, Beverage and Tobacco group increased to 62 percent from 58 percent recorded in H2 2020, and 52.4 percent recorded in H1 2021. In the Textile Apparel & Footwear group, it hit 67 percent in H2 2021 from 54 percent recorded in H2 2020, and 50.2 percent recorded in H1 2021.

For the Domestic & Industrial Plastic group, it increased to 65 percent from 56 percent recorded in H2 2020, and 51.0 percent recorded in H1 2021.  In the Electrical & Electronic sectoral group, capacity utilisation increased to 63 percent in H2 2021 from 50 percent recorded in H2 2020, 49.1 percent recorded in H1 2021.  In the Basic Metal, Iron & Steel sectoral group, it increased to 60 percent in H2 2021 from 51 percent recorded in H2 2020, and 57.3 percent H1 2021.

However, in the non-Metallic Mineral sectoral group, manufacturing capacity utilisation declined to 46 percent in H2 2021 from 53 percent recorded in H2 2020 and H1 2021 respectively; thus showing four percentage points decline over the period.