In the second quarter of 2024, Nigeria’s manufacturing sector recorded a year-on-year growth of 1.28%, according to the latest Gross Domestic Product (GDP) report from the National Bureau of Statistics (NBS).
This growth, however, reflects a slowdown compared to the 0.92% growth in the same quarter of 2023 and a slight decline of 0.22% from the first quarter of 2024.
The sector’s real contribution to GDP decreased to 8.46% from 8.62% in Q2 2023 and 9.98% in Q1 2024.
The Manufacturers Association of Nigeria (MAN) attributed this slow growth to the dwindling presence of industrial clusters across the country.
According to MAN President Francis Meshioye, the decline in industrial clusters, particularly in Lagos, is indicative of a broader trend where businesses are either closing down or being overtaken by other sectors.
Meshioye highlighted that over 700 businesses have shut down in recent years, with big manufacturers like Procter & Gamble and Unilever Nigeria either downsizing or leaving the country.
The NBS report also noted that the manufacturing sector contracted by -15.16% quarter-on-quarter.
Additionally, the MAN CEO’s Confidence Index revealed low confidence in the Nigerian economy among five key industrial zones.
Meshioye further emphasized the adverse impact of the high Monetary Policy Rate (MPR) on the sector and urged the Monetary Policy Committee to avoid further interest rate hikes in its next meeting.