The Manufacturers Association of Nigeria (MAN) has reviewed the country’s manufacturing performance for the second half of 2024, pointing out that the sector’s local raw material sourcing increased to 57.1 per cent in 2024, up from 52.0 per cent in 2023.
The Director-General, MAN, Mr Segun Ajayi-Kadir, made this known yesterday in Lagos, in a report titled ” MAN Economic Review- Second Half 2024″.
He said the focus manufacturing indicators included capacity utilisation, production value, inventory, local raw materials utilisation levels, investment, expenditure on alternative energy sources among others.
Ajayi-Kadir noted that capacity utilisation of the manufacturing sector improved marginally to 57.0 per cent in 2024, up from 55.1 per cent in 2023.
A half-on-half analysis showed a 1.2 percentage point increase in H2 2024 compared to H1 2024.
He revealed that the sector’s real manufacturing output increased modestly by 1.7 per cent year-on-year to N7.78 trillion.
According to him, the development is buoyed by increased activity in motor vehicles and miscellaneous assembly, non-metallic mineral products, and electrical and electronics.
He, however, noted a half-on-half decline of 3.1 per cent in real production reflected rising costs and weak consumer demand.
“Nominal manufacturing output rose sharply by 34.9 per cent to N33.43 trillion, primarily due to inflationary pressures and rising domestic prices,” he said.
The MAN D-G said the manufacturing sector’s local raw material sourcing increased to 57.1 per cent in 2024, up from 52.0 per cent in 2023.
This shift, he stated, was largely driven by foreign exchange scarcity, high import costs, and government incentives promoting local content.
Ajayi-Kadir declared improvements observed in wood and wood products, textiles, apparel and footwear, and chemical and pharmaceuticals.
He said the electrical and electronics sector continued to lag due to dependency on imported components.
On the downside, the manufacturing expert noted that inventory of unsold finished goods surged by 87.5 per cent to N2.14 trillion in 2024.