Manufacturing Sector contributes 9% to GDP in 5yrs in Nigeria

• Stakeholders urges infrastructural deficiencies in the sector to be addressed

The manufacturing sector recorded an aggregate contribution of N32.346 trillion to the Nigerian economy over the past 5 years traversing from 2018 to 2022, according to available statistics.

The manufacturing sector’s contribution represents just 9.0 percent of the total N358.232 trillion cumulative Gross Domestic Product, (GDP), recorded within the period under review.

However, records from the National Bureau of Statistics (NBS) indicated that the nation’s aggregate economic activities, or the GDP in real terms, within the period stood at N69.797 trillion in 2018; N71.387 trillion in 2019; N70.014 trillion in 2020; N72.393 trillion in 2021; and N74.639 trillion in 2022.

A breakdown of the data shows that the contribution of the manufacturing sector during the period under review was N6.421 trillion in 2018; N6.470 trillion in 2019; N6.292 trillion in 2020; N6.502 trillion in 2021; and N6.661 trillion in 2022, representing 9.20 percent; 9.06 percent; 8.99 percent; 8.98 percent; and 8.92 percent, respectively.

In all these, stakeholders have pointed out that infrastructural deficiencies have constituted major constraints to the growth of Nigeria’s manufacturing sector.

According to them, top among infrastructural deficiencies is power supply, as most firms rely on power generators to run seamless operations and finally adding to costs, especially with the escalation in the price of diesel.

Other challenges, they said, include forex scarcity, difficult access to credit, and the rising cost of imported raw materials, amongst others.

Commenting on this development, Director General, Manufacturers Association of Nigeria (MAN), Mr. Segun Ajayi-Kadir, also said: “Conceptually, manufacturing is unarguably the backbone of national economic development.

“It is countries that are able to transform their raw materials into a wide range of furnished goods and add value that are prosperous. Beyond the role of the sector in the domestic economy, manufactured exports expands the scope of trade, commerce and foreign exchange inflow.

“There is therefore the need to address the binding constraints that have continued to militate against the performance of the manufacturing sector and limited its share of contribution to the GDP.”

On his part, the immediate past President, Nigerian Association of Chambers of Commerce, Industries, Mines and Agriculture (NACCIMA), Ide John Udeagbala, said: “I think that a situation where less than one-in-ten products produced in the Nigerian economy is the outcome of an industrialised process does not bode well for our economic growth and development objectives. This is because industrialisation is well-established as a pathway to development.

“Although Nigeria can be said to have an advanced services sector, an average manufacturing contribution of 9% to national output (GDP) indicates that we are falling well below our industrialisation goals.”