Nigeria’s manufacturing sector records fastest year growth in over 10 quarters
Adesola Afolabi was a businessamlive reporter and Head of Financial desk.
Nigeria’s manufacturing sector’s real GDP growth in the first quarter of 2018 came in at 3.4 percent, the country’s Bureau of Statistics, NBS, shows.
The percentage growth, year-on-year, is higher compared to the same quarter of 2017 and the preceding quarter by 2.03 and 3.26 percent respectively.
The growth is attributed to strengthening in sub-sectors, such as the Food & Beverage (+5.5percent), Cement (+5.3 percent), Oil refinery (+7.1percent) and Textile(+1.9 percent).
However, the growth rate of the sector on a quarter-on-quarter basis was down -3.16 percent. Indicating a downturn and slow down in production activities. Manufacturing’s contribution to real GDP in Q1 2018 was 9.91 percent.
Nominal GDP growth of Manufacturing in the first Quarter of 2018 was recorded as 8.93 percent (year-on-year), 7.70 percentage points lower than figures recorded in the corresponding period of 2017 (16.63%) and –0.27 percentage points lower than the preceding quarter figure of 9.20 percent. Quarter on Quarter nominal growth of the sector is recorded at 1.04 percent. The contribution of Manufacturing to Nominal GDP was 9.27 percent, lower than the growth recorded in the corresponding period of 2017 at 9.31 percent but higher than the 8.53 percent recorded in the fourth quarter of 2017.
Real and nominal values are different as a result of an adjustment for inflation, Real values are adjusted for inflation while nominal values are not. As a result, nominal GDP will often appear higher than real GDP
The manufacturing sector is comprised of thirteen activities which include Oil Refining; Cement; Food, Beverages and Tobacco; Textile, Apparel, and Footwear; Wood and Wood products; Pulp Paper and Paper products; Chemical and Pharmaceutical products; Non-metallic Products, Plastic and Rubber products; Electrical and Electronic, Basic Metal and Iron and Steel; Motor Vehicles and Assembly; and Other Manufacturing.
Analysts at united capital are optimistic that the developments in the manufacturing sector point to faster recovery going forward.