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Contribution of manufacturing sector to GDP drops to 8.42% in Q3 

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In the third quarter of 2023, the real contribution of the manufacturing sector to Nigeria’s GDP dropped to 8.42%.

This figure is lower by 0.20% when compared to the 8.62% contribution of the sector in the second quarter of 2023.  

When compared with the corresponding quarter of 2022, the sector’s contribution to the economy stood at 8.59% which is also lower than the current figure.  

This is according to the GDP report for the third quarter of 2023 released by the NBS. 

The real growth rate of the manufacturing sector in the third quarter of 2023 was 7.12% which is higher than the preceding quarter by 1.72%.  

The manufacturing sector experienced a year-on-year real GDP growth of 0.48% in the third quarter of 2023, surpassing the corresponding quarter in 2022 by 2.39%.  

In terms of nominal growth, the sector recorded a year-on-year growth of 36.59% which was 34.39 higher than the figure recorded in the same quarter of 2022.

It also represents a 6.69% increase when compared to the second quarter of 2023.  

In the third quarter of 2023, manufacturing contributed 16.18% to Nominal GDP, surpassing the third quarter of 2022 which stood at 13.75% and the second quarter of 2023 which was 14.55%. 

The manufacturing sector comprises activities such as oil refining, cement production, food and beverages, textile, pharmaceutical products, rubber and plastic etc.  

In recent times, the reforms of the new administration in the country have negatively impacted the manufacturing sector’s performance.

Notable manufacturing companies listed on the NGX such as Dangote Cement, Notore, and BUA Cement, reported a combined foreign exchange loss of -N129.811 billion.  

The FX loss being recorded was a result of the “controlled devaluation” of the naira in June by the CBN through the unification of the FX market.  

In a bid to assuage the pains of manufacturers after the subsidy removal, President Tinubu promised to provide N75 billion single-interest loans to manufacturers and review the tax complaints from players in the industry.

The President earlier in his administration set up the Presidential Committee on Fiscal Policy and Tax Reforms which has so far produced a “quick win” report.  

 

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