Manufacturers’ expenditure on alternative energy utilisation in the second half of 2017 declined to N51.35 billion from N66.96 billion expended in the corresponding period of 2016, thus, indicating N15.61 billion savings over the period, according to Manufacturers Association of Nigeria (MAN) 2017 economic review report.
The report signed by the president of MAN, Dr. Frank Jacobs and made available to the newsmen, stated that manufacturers experienced inadequate electricity supply with an average of nine hours and four times power outage daily.
According to the report, the decline in expenditure on alternative energy source can be attributed to the relative improvement in electricity supply to manufacturing companies from the national grid. The report indicated that inadequate and high interest rate remained major challenges to the manufacturing sector in the period under review.
Jacobs said alternative energy expenditure “also declined by N14.72 billion when compared with N66.03 billion recorded in the preceding half. Expenditure on alternative energy utilization in the sector totaled N117.38 billion in 2017 as against N129.95 billion recorded in 2016; thus, indicating N12.57 billion decline over the period.’’
A survey of manufacturers by MAN shows that cost of lending to the manufacturing sector stood at 23.05 percent in the second half of 2017 which is almost the same figure with 23.3 percent recorded in the corresponding period of 2016.
However, it increased by 0.37 percentage point when compared with 22.65 percent recorded in the preceding half. Lending rate from the commercial bank to the manufacturing sector averaged 22.8 percent in 2017 as against 22.4 percent average recharged in 2016; thus indicating 0.4 percentage point increase over the period.
The Executive Summary report stressed that the value of manufacturing production in the second half of 2017 was estimated at N5.03 trillion as against N5.02 trillion recorded in the corresponding half of 2016; thereby indicating N0.01 trillion increases over the period.
“It also increased by N0.27 trillion or 5.5 percent when compared with N4.76 trillion recorded in the preceding half. Production in the manufacturing sector totaled N9.79 trillion in 2017 as against N8.78 trillion totals of 2016; thereby indicating N0.01 trillion increases over the period. The production performance of the sector in 2017 was due to the relative stability in the forex market and improvement in the general Ease-of-Doing-Business in the economy within the review period,’’ the report read in part.
Jacobs also said that at the end of 2017, an estimated 1,649,612 historical cumulative jobs were created in the manufacturing sector based on the information gathered from the various surveys conducted by the association over time.
He said, “A total of 10,257 manufacturing jobs were created in the second half of 2017 as against 10,061 jobs created in the corresponding half of 2016; thus indicating an increase of 196 jobs over the period. Food, Beverage and Tobacco sectoral group accounts for most of the jobs created in the manufacturing sector as it created 3,994 jobs in the second half of 2017.
“A total of 5,212 jobs were lost in the period under review as against 5,079 jobs lost in the preceding half; thereby indicating an increase of 133 jobs lost over the period”.
The executives report by MAN added that world manufacturing output growth stood at 4.7 percent in fourth quarter of 2017 from 4.5 percent recorded in the preceding quarter while manufacturing in the industrial economies grew by 3.5 percent in the fourth quarter of 2017 as against 3.1 percent growth recorded in the third quarter of the year.
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