Adedapo Adesanya
By Adedapo Adesanya
The Manufacturers Association of Nigeria (MAN) has expressed fresh worries about the Nigerian business environment, which has reflected in the value of manufacturing production decreased from N7.39 trillion in 2021 to N6.67 trillion in 2022.
This indicated a 9.7 per cent or N720 billion decline, according to the Chairman of MAN, Apapa branch, Mr Frank Onyebu, during the annual general meeting of the branch earlier this week.
Mr Onyebu said the year 2022 was mostly characterised by a harsh operating environment, themed by record-high inflationary pressure, high-interest rates, multiple taxations, high energy costs, forex illiquidity, and shortage of raw materials, among others.
He added that supply shortages, surging material prices, and difficulty in hiring qualified staff stalled the growth of the manufacturing sector.
He said, “The value of the manufacturing sector’s factory output declined to N2.68tn in the second half of 2022 from N3.73 trillion recorded in the corresponding half of 2021.
“This represented N1.05 trillion or 28 per cent decline over the period under review. There was also a decline of N1.31 trillion or 32 per cent when compared with N3.99 trillion recorded in the preceding half.
“The value of manufacturing production totalled N6.67 trillion in 2022 as against N7.39 trillion recorded in 2021. Manufacturing production was severely affected in the second half of 2022 by the absence of implementation of new capital projects by the government as they focused on the election.”
The MAN branch head noted that many manufacturers exited Nigeria to neighbouring countries in 2022 due to the harsh operating environment and warned that the country should brace for more exits.
Recall that GlaxoSmithKline (GSK) recently announced plans to discontinue operations in Nigeria, ending its 51-year existence in the country since July 1972.
The British multinational pharmaceutical and biotechnology company best known for household brands like Panadol and Sensodyne, in a corporate filing to the Nigerian Exchange (NGX) Limited, said it would now adopt a distributor-led model to supply the country with its products.
GSK Nigeria said it was working with its advisers to determine the next steps and intends to submit a scheme of arrangement to the Securities and Exchange Commission (SEC) for the possible return of capital to its local shareholders.
