The Manufacturers Association of Nigeria (MAN) on Tuesday said that the sector’s Foreign Direct Investment (FDI) increased to $400 million in the 3rd quarter of 2020, from $153.77 million recorded in the corresponding quarter of 2019.
The $246.23 million increase indicates a rise of 160.13 per cent, the association detailed in its Bi-annual Review of the Economy for July to December 2020.
The report stated conversely that Foreign Portfolio Investment (FPI) fell to $407.25 million in the 3rd quarter of 2020 from $3.027 billion recorded in corresponding quarter of 2019; thus, indicating $2.619 billion decrease over the period.
“However, it increased by $21.93 million when compared with $385.32 million recorded in the 2nd quarter of 2020,
“Also, trade summary report shows that Nigerian merchandize trade fell to N8.37 trillion in the 3rd Quarter of 2020 from N9.19 trillion recorded in the corresponding quarter of 2019; thus, indicting N0.82 trillion or 8.9 per cent decrease over the period.
“However, it increased by 34.15 per cent when compared with N6.24 trillion recorded in 1st half of the year.
“Balance of Trade fell to -N2.39 trillion in the 3rd quarter of 2020 from N1.39 trillion recorded in the corresponding half of 2019 and -N1.80 trillion recorded position in the 2nd quarter of the year.
“Nigeria’s import trade increased to N5.38 trillion in the 3rd quarter of from N3.9 trillion recorded in the corresponding quarter of 2019 and N4.02 trillion of 2nd quarter of the year.
“Export trade of the country fell to N2.99 trillion in the 3rd quarter of 2020 from N4.6 trillion recorded in thecorresponding quarter of 2019; thus, indicating N1.61 trillion or 35 per cent declined over the period.
“However, it increased by N0.77 trillion or 34.7 per cent when compared with N2.22 trillion recorded in the 2nd quarter of the year.
“Manufactured goods accounted for only 4.44 per cent of total export merchandize, but 43 per cent of total import merchandize in the 3rd quarter of 2020,” it said.
The report also stated that manufacturing capacity utilization edged up to 53.7 per cent in the 2nd half of 2020 from 43.2 per cent recorded in the 1st half of the year; thus, indicating 8.5 per cent point increase over the period.
The uptick in capacity utilization during the period was attributed to the relaxing the COVID-19 containment measures, particularly the opening of the economy for business activities in the 2nd half 2020.
“The increase is also seasonally influenced as a result of Christmas celebration which boosted economic activities in the last quarter of the year,” it read.
Also, manufacturing production value declined to N2.36 trillion in the 2nd half of 2020 from N7.38 trillion recorded in the corresponding half of 2019; thus, indicating N5.02 trillion decline over the period.
However, it increased by N0.32 trillion or 15.5 per cent when compared with N2.04 trillion recorded in the 1st half of the year.
“Production value in the sector totaled N4.4 trillion in 2020 as against N11.99 trillion achieved in 2019.
“The uptick in manufacturing production in the 2nd half over the performance in 1st half of the year was due to the opening up of the economy for businesses after over five months of lockdown to contain the spread of COVID-19,”it stated.
Raw materials sourcing also declines to 56.5 per cent as against 64 per cent recorded in the corresponding half of 2019, indicating a 7.5 per cent decline over the period.
MAN attributed the decline in local raw-materials utilization to the opening up of world economies for trade after months of global lockdown.
“Manufacturers are, therefore, able to increase importation of raw materials,” it said.
The inventory of unsold finished manufactured goods also increased to N303.22 billion from N202.16 billion recorded in the corresponding half of 2019; thus, indicating N101.06 billion or 50 per cent increase over the period.
The increase in inventory in the period was attributed to the general low consumption and renewed imports in the economy as global economies generally opens after months of lockdown.
“It also increased by N28.83 billion or 10.5 per cent when compared with N275.39 billion recorded in the 1st half of the year.
“Inventory of unsold manufactured goods in the sector totaled N577.61 billion in 2020 as against N402.42 billion recorded in the 2019.
“Electrical and Electronic sectoral group accounted for over 33 per cent of total inventory of unsold manufactured products in period.
“The group are having the challenges of low patronage, high smuggling and products counterfeiting which rubbed-off negatively on inventory,” it said.
