Manufactured goods unsold hit N149.23bn in 6 months- MAN

Nigeria’s manufacturing sector recorded a static N149.23 billion inventory of unsold goods in the first half of 2018; according to the Manufacturers Association of Nigeria, (MAN). The preceding year, according to MAN’s half yearly review of the Nigerian economy, recorded higher figures with N159.59 billion and N161.53 billion. This implies that 2018 went down by within 6.5 and 7.6 percent respectively. The figures, MAN stated, was induced by real consumption due to inflationary pressure; smuggling, counterfeiting and cloning of Nigerian manufactured products as well as high cost operating environment. The report revealed that the analysis conducted showed that a greater part of the unsold goods were majorly in the Basic Metal, Iron & Steel Fabricated Metal group (N28.41 billion or 19.03 percent); Chemical and Pharmaceutical sector (N24.36 billion or 16.2 percent): Food, Beverage and Tobacco (N19.5 billion or 13.1 percent); and Domestic/Industrial Plastic, Rubber & Foam (N18.96 billion or 13.4 percent). “Inventory of unsold finished goods in Basic Metal, Iron & Steel Fabricated Metal stood at N28.41 billion in the first half of 2018, representing N18.71 billion increased over N9.7 billion recorded in the corresponding half of 2017 and N2.98 billion (9.4 percent) of N31.39 billion of the preceding half. The recorded inventory in the sector is largely due to the sluggishness of global steel market following the US protectionist stance for its steel sector”. The report also showed that manufacturing investment stood at N305.56 billion, representing N23.72 billion (7.2 percent) decline and N128.87 billion (72.9 percent) increase over N329.28 billion recorded in the corresponding half of 2017 and N176.69 billion of the preceding half respectively. “Sectoral group analysis shows that the highest proportion of total manufacturing investment in the first half of 2018 went to Food, Beverage and Tobacco group. Investment in the sector stood at N86.94 billion, N4.13 billion (4.5 percent) lower than N91.07 billion of the corresponding half of 2017 and N14.2 billion (19.5 percent) of N72.74 billion of the preceding half”. The Food, Beverage and Tobacco sectoral group also accounted for most of the jobs created in the manufacturing sector, creating 2,999 jobs; Domestic/Industrial Plastic & rubber (1,374 jobs); Basic Metal, Iron & Steel (1,229 jobs); and chemical & pharmaceutical group (1,209 job) in the period. The associations’ report lauded the performance of the manufacturing sector in 2018. While adding that, consumption was below par, despite the macroeconomic developments within the period. Joy Obakeye