The contribution of the manufacturing sector to Nigeria’s Gross Domestic Product (GDP) in the fourth quarter of 2023 dropped from 8.40 per cent, as recorded in the corresponding period of the previous year, to 8.23 per cent, according to the GDP report for Q4 published by the NBS.
On a quarter-on-quarter basis, the sector’s contribution to GDP dropped by 0.19 per cent, from 8.42 per cent to the current figure.
The manufacturing sector’s Q4 2023 Real GDP growth stood at a 1.38 per cent year-on-year increase, representing a slight decline from 2022 but an improvement from the previous quarter. Quarter-on-quarter growth stood at 9.54 per cent.
The Manufacturing sector experienced a notable increase in Nominal GDP growth in the fourth quarter of 2023, reaching 38.06% on a year-on-year basis.
This marked a significant leap of 29.20 percentage points from the 8.86 per cent growth observed in the same period of 2022 and a modest improvement of 1.47 percentage points over the previous quarter’s growth rate of 36.59 per cent.
Additionally, the sector saw a quarter-on-quarter growth of 7.70 per cent during the final quarter of the year.
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Considering the sector’s performance on year-on-year growth, there was a remarkable annual growth rate of 30.93 per cent, a stark contrast to the 6.93 per cent growth rate in 2022.
The Manufacturing sector’s contribution to the Nominal GDP in Q4 2023 was 16.04 per cent, which represents an increase from the 13.49 per cent contribution during the same quarter in 2022, though it slightly declined from the 16.18 per cent recorded in the third quarter of 2023.
This data underscores the Manufacturing sector’s significant and growing impact on the overall economy.
The Manufacturing sector encompasses industries involved in cement production, beverages, oil refining, food processing, tobacco, textiles, rubber processing, footwear manufacturing, paper production, and the creation of chemicals and pharmaceuticals.
The decline in the Manufacturing sector’s contribution to the real GDP this quarter was anticipated, given the challenging macroeconomic conditions it faced. Elevated energy costs, significant exchange rate fluctuations, increased interest rates, and the rising cost of raw material imports forced many companies to scale back production and endure narrower profit margins.
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