Increase in capital inflow into the manufacturing sector in the first half of 2023 rose to $861.16 million or 88.16 per cent, compared to $457.67 million in the first half of 2022, data from the National Bureau of Statistics (NBS) has revealed.

Speaking on this development, the Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, said the capital imported into the manufacturing sector in the first half of the year is largely in form of loans and bonds, reflecting the challenges facing the manufacturers and the need to meet short-term obligations and slowing business activities.

“For example, Dangote Group and Tolaram raised N300 billion bonds, $38 million, respectively. The significant increase reflects a low base of capital imported in the previous year and investors’ reaction to the two critical reforms, fuel subsidy removal and exchange rate harmonisation, in the first month of the new administration,” she stated.

She added that inflow in H1 2023 is expected to impact the manufacturing sector, particularly firms mitigating against current challenges, meeting short-term obligations and falling consumer demand.

She said that despite the harsh operating environment, the sector continues to demonstrate a degree of resilience and grew by 1.61 percent and 2.20 per cent in Q1 and Q2 2023 respectively.