The Manufacturer Association of Nigeria (MAN) has stated that the decline in capacity utilisation marginally from 61.0 per cent recorded in the second half of 2018 to 59.4 percent in the second half of 2019, which represents 1.6 percentage over the review period was attributed to reduction in the purchasing power of the populace on account of the increasing inflation rate experienced in the country, particularly in the second half of the year.
MAN in its ‘Executive Summary’ which reviewed the economy in the second half of 2019, said capacity utilisation in the sector averaged 56.8 per cent in the year 2019, indicating 0.95 percentage point increase from 57.75 per cent average recorded in 2018.
It, however, said capacity utilisation increased by 5.3 percentage point when compared with 54.1 per cent recorded in the first half of 2019.
The Executive Summary, which was released and made available to our correspondent, said across sectoral groups, performance of capacity utilisation was a mixed bag.
Part of the released data indicates that capacity utilisation declined in the Wood & Wood Products (62.2 per cent), Pulp, Paper, Printing & Publishing (62.4 per cent), Domestic/Industrial Plastic and Rubber group (52.0 per cent), Basic Metal, Iron & Steel (62.4 per cent) and Motor Vehicle & Miscellaneous Assembly group (52.8 per cent).
However, it increased in Food, Beverage and Tobacco group (72.1 per cent), Textile Apparel & Footwear group (61.2 per cent), Chemical & Pharmaceutical (61.9 per cent), Non-metallic (60.3 per cent) and Electrical Electronics (47.1 per cent).
Also, capacity utilisation in Food, Beverage and Tobacco increased to
72.1 per cent in the second half of 2019 as against 62.9 per cent recorded in the corresponding half of 2018; thus indicating 9.2 percentage point increase over the period.
It also shows an increase of 18.8 percentage point when compared with 53.3 per cent recorded in the preceding half. Capacity utilisation in the group averaged 62.7 per cent in 2019 against 60.89 per cent average of 2018; thus indicating 1.81 percentage point increase over the period.
Analysis of industrial zones by MAN shows that in the second half of 2019 capacity utilisation increased in Ikeja zone (70.8 per cent); Imo/Abia (62.4 per cent); Edo/Delta (56.3 per cent); Kaduna (64.2 per cent); Kano Bompai (63 per cent); Apapa (70.8 per cent); Rivers (57.6 per cent); and Kwara/Kogi (55.4 per cent).
Conversely, it declined in Kano Sharada/Challawa (53.7 per cent), Ogun (60.9 per cent), Anambra/Enugu (53.2 per cent); Baunchi/Benue/Plateau (47.7 per cent): and
Abuja (57.8 per cent). Capacity utilisation in Ikeja zone (the industrial hub of the nation) increased to 70.8 per cent in the second half of 2019 from 67.6 percent recorded in the corresponding half of 2018; thereby indicating 3.2 percentage point increase over the period.
It also increased by 2.7 percentage point when compared with 68.1 per cent recorded in the preceding half. Contrarily, in Ogun zone, it fell to 60.9 per cent in the second half of 2019, from 69.5 per cent recorded in the corresponding half of 2918; thus indicating 8.6 percentage point increase over the period.
The zone also fell by 8.3 percentage point when compared with 69.2 percent recorded in the preceding half.
