Manufacturing investments decline by 21.9 per cent H1 2019

Although estimated cumulative manufacturing investment from 2013 to first half of 2019 stood at N4.784trillion based on data generated from the Manufacturers Association of Nigeria (MAN), investment in the sector stood at N238.45 billion in the first half of 2019, representing N67.11 billion (21.9 percent) decline from N305.56 billion recorded in the corresponding h0alf of 2018.

According to the latest data from MAN, the value of investments also declined by N8.63 billion (3.5 percent) when compared with N247.08 billion recorded in the second half of 2018.

MAN explained that manufacturing investment in the period, was affected by late passage of 2019 budget which affected capital expenditure implementation, poor economic support infrastructure, over regulation and high cost of capital in the economy.

In the first half of 2019, investment in Plant & machinery ranked highest with investment worth N100.92 billion, though lower than N110.47 billion recorded in corresponding half of 2018 but higher than N72.98 billion recorded in the second half of 2018.

Asset Under construction trailed with investment worth N84.06 billion; Land and Building with investment worth investment worth N40.35 billion; Motor Vehicle with investment worth N7.97 billion; and Furniture and Fitting with investment worth N5.15 billion in the first half of 2019.

Across sectoral groups, Food, Beverage and Tobacco group ranked highest with investment worth N73.95 billion in the first half of 2019, though lower than N86.94 billion and N123.13 billion recorded in the first and second halves of 2018 respectively. This trailed by Chemical & Pharmaceutical (N51.76 billion); Basic Metal, Iron & Steel (N33.06 billion; and Motor Vehicle & Miscellaneous Assembly (22.54 billion) in the period.

Furthermore, analysis based on industrial zones showed that Ogun ranked highest in the first half 2019 with investment N74.56 billion, though lower than N95.31 billion recorded in the first half of 2018 but high than N26.16 billion recorded in the second half.

However, Ogun zone maintains the investment destination hub of Nigeria. Ikeja zone recorded investment worth N55.98 billion in the first half of 2019, though higher than N54.8 billion of the corresponding half of 2018 but lower than N80.76 billion achieved in second quarter of 2018.

Investment in Apapa zone declined to N18.52 billion as against N93.67 billion recorded in the first of half of 2018 and N47.29 billion in the second half.