Economy
Nigeria’s Manufacturing Output Rises 1.7% to N7.78trn Amid Challenges
By Adedapo Adesanya
The Manufacturers Association of Nigeria (MAN) has revealed that real manufacturing output in the country increased modestly by 1.7 per cent year-on-year to N7.78 trillion amid prevailing challenges.
The Director-General of MAN, Mr Segun Ajayi-Kadir, in a report titled MAN Economic Review- Second Half 2024, said the focus manufacturing indicators included capacity utilisation, production value, inventory, local raw materials utilisation levels, investment, expenditure on alternative energy sources among others.
MAN also said capacity utilisation improved marginally to 57.0 per cent in the second half of 2024, up from 55.1 per cent in the same period of 2023.
A half-on-half analysis showed a 1.2 percentage point increase in H2 2024 compared to H1 2024.
According to him, the development is buoyed by increased activity in motor vehicles and miscellaneous assembly, non-metallic mineral products, and electrical and electronics.
He, however, noted a half-on-half decline of 3.1 per cent in real production reflected rising costs and weak consumer demand.
“Nominal manufacturing output rose sharply by 34.9 per cent to N33.43 trillion, primarily due to inflationary pressures and rising domestic prices,” he said.
The MAN DG said the manufacturing sector’s local raw material sourcing increased to 57.1 per cent in 2024, up from 52.0 per cent in 2023.
This shift, he stated, was largely driven by foreign exchange scarcity, high import costs, and government incentives promoting local content.
Mr Ajayi-Kadir declared improvements observed in wood and wood products, textiles, apparel and footwear, and chemical and pharmaceuticals.
He said the electrical and electronics sector continued to lag due to dependency on imported components.
On the downside, the manufacturing expert noted that inventory of unsold finished goods surged by 87.5 per cent to N2.14 trillion in 2024.
He attributed the drive to weakened consumer demand, escalating production costs, and declining purchasing power.
He, however, said that a half-on-half decrease of 27.9 per cent in H2 2024 suggested improved clearance efforts and price adjustments.
He added that the country’s real manufacturing investment fell by 35.3 per cent year-on-year to N658.81 billion in 2024, reflecting economic uncertainty and reduced expansion plans.
“However, H2 2024 witnessed a 19.4 per cent increase compared to H1 2024, as manufacturers cautiously resumed capital expenditures.
“The employment situation in Nigeria’s manufacturing sector remained relatively stable in 2024, with 34,769 jobs added, a 1.8 per cent increase from 34,163 jobs in 2023.
“However, the number of employees leaving manufacturing companies also increased from 17,364 in 2023 to 17,949 in 2024, indicating ongoing labour mobility due to economic uncertainties, skill migration, and company restructuring,” he said.
Mr Ajayi-Kadir also said that electricity supply situation for industries improved in 2024, with the average daily supply increasing to 13.3 hours per day, up from 10.6 hours in 2023.
He stated that on a half-on-half basis, electricity supply rose from 11.4 hours per day in H1 2024 to 15.2 hours in H2 2024.
The MAN DG, however, noted that electricity tariffs surged by over 200 per cent for Band A consumers, significantly increasing manufacturing costs.
“In response to unreliable grid power and increases in prices of diesel and fuel manufacturers’ total expenditure on alternative energy sources surged to N1.11 trillion, a 42.3 per cent increase from N781.68 billion in 2023.
“On a half-on-half basis, manufacturers spent N404.80 billion in H1 2024, which increased by 75.0 per cent to N708.07 billion in H2 2024,” he said.
Mr Ajayi-Kadir added that rising interest rates posed a major financial burden, with commercial bank lending rates to manufacturers surging to 35.5 per cent in 2024 from 28.06 per cent in 2023.
“Consequently, manufacturers’ finance costs totalled N1.3 trillion, constraining investment and expansion plans,” he said.
By Aduragbemi Omiyale
The sum of N1.681 trillion has been disbursed to the federal government, the 36 states and the 774 local government areas of the federation from the N2.849 trillion generated in April 2025 by the nation, higher than the N1.719 trillion earned in March 2025.
The money was given to the three tiers of government by the Federation Account Allocation Committee (FAAC) after its meeting for this month.
A statement issued after the meeting held in Abuja disclosed that last month, Petroleum Profit Tax (PPT), Oil and Gas Royalty, Electronic Money Transfer Levy (EMTL), Value Added Tax (VAT), Excise Duty, Import Duty and CET Levies increased significantly, while Companies Income Tax (CIT) decreased considerably.
It was revealed that the N1.681 trillion shared in May 2025 comprised distributable statutory revenue of N962.882 billion, distributable VAT revenue of N598.077 billion, EMTL revenue of N38.862 billion and exchange difference of N81.407 billion.
From the N1.681 trillion, the federal government got N565.307 billion, the states received N556.741 billion, the local councils were given N406.627 billion, and the oil-producing states took N152.553 billion as 13 per cent of mineral revenue.
From the N962.882 billion distributable statutory revenue, the national government was given N431.307 billion, N218.765 billion was disbursed to the states, N168.659 billion went to the local councils, and N144. 151 billion was distributed among the oil-generating states as 13 per cent of mineral revenue.
In addition, from the N598.077 billion distributable VAT revenue, FAAC gave the central government N89.712 billion, N299.039 billion to the state government, and N209.327 billion to the local governments.
Further, from the N38.862 billion generated from EMTL, the federal government got N5.829 billion, the state governments received N19.431 billion, and the local councils went away with N13.602 billion.
Also, from the N81.407 billion exchange difference, the federal government took N38.459 billion, the state governments went with N19.507 billion, the local governments received N15.039 billion, and the oil-producing states shared N8.402 billion as 13 per cent of mineral revenue.
By Dipo Olowookere
The last trading session of this week ended a positive note with a 0.22 per cent leap on Friday, influenced by continued demand for local equities.
During the session, the All-Share Index (ASI) gained 242.73 points to close at 109,710.37 points compared with the 109,467.64 points it ended in the preceding trading day, and the market capitalisation expanded by N152 billion to finish at N68.953 trillion versus Thursday’s closing value of N68.801 trillion.
Business Post reports that the consumer goods lost its momentum yesterday, going down by 0.26 per cent at the close of transactions.
However, the commodity index gained 2.08 per cent, the insurance counter appreciated by 1.10 per cent, the energy sector improved by 0.52 per cent, the industrial goods industry jumped by 0.27 per cent, and the banking sector grew by 0.10 per cent.
A total of 36 stocks ended on the gainers’ table and 21 stocks finished on the losers’ chart, implying a positive market breadth index and strong investor sentiment.
Four shares chalked up the maximum 10.00 per cent price appreciation on Friday and they were Northern Nigeria Flour Mills, Trans-Nationwide Express, Champion Breweries, and Honeywell Flour, quoting at N119.90, N2.20, N6.82, and N18.15, respectively, as Beta Glass gained 9.99 per cent to finish at N235.05.
On the flip side, International Energy Insurance depreciated by 9.57 per cent to N1.70, Multiverse slumped by 9.55 per cent to N8.05, The Initiates tumbled by 7.86 per cent to N6.80, University Press crashed by 7.37 per cent to N4.40, and Regency Alliance lost 6.78 per cent to sell for 55 Kobo.
Investors traded 431.8 million equities worth N8.6 billion in 16,400 deals during the session compared with the 716.1 million equities valued at N13.7 billion exchanged in 14,559 deals in the previous day, showing an increase in the number of deals by 12.65 per cent and a fall in the trading volume and value by 39.70 per cent and 37.23 per cent apiece.
The busiest stock was Access Holdings with 32.1 million units valued at N739.7 million, GTCO transacted 30.9 million units for N2.1 billion, AIICO Insurance traded 28.9 million units worth N46.5 million, Universal Insurance exchanged 25.0 million units valued at N13.0 million, and Chams sold 23.8 million units worth N54.2 million.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended recent gains by 0.03 per cent on Friday, May 16, supported by five companies, whose share prices closed green.
NASD Plc added N2.09 to close at N22.99 per unit compared with Thursday’s closing price of N20.90 per unit, Geo-Fluids Plc gained 23 Kobo to settle at N2.54 per share versus the preceding day’s N2.31 per share, Nipco Plc appreciated by 8 Kobo to N199.88 per unit from N199.80 per unit, Afriland Properties Plc grew by 5 Kobo to N17.50 per share from N17.45 per share, and FrieslandCampina Wamco Nigeria Plc gained 2 Kobo to finish at N41.00 per unit compared with the previous closing value of N40.98 per unit.
As as result, the NASD Unlisted Security Index (NSI) rose by 0.99 per cent to 3,154.86 points from the previous session’s 3,153.87 points, and the market capitalisation went up by N580 million to close at N1.847 trillion from N1.846 trillion quoted at the preceding session.
Business Post reports that during the session, Central Securities Clearing System (CSCS) lost 29 Kobo to trade at N25.70 per share versus N23.99 per share, and First Trust Mortgage Bank Plc shrank by 2 Kobo to 61 Kobo per unit from 63 Kobo per unit.
A look at the activity chart indicated that the number of deals carried out by investors increased by 24.1 per cent to 36 deals from 29 deals, previously recorded at the previous session, the value of transactions rose by 196.9 per cent to N15.4 million from N5.2 million, while the volume of securities bought and sold decreased by 16.6 per cent to 253,960 units from the 304,374 units recorded a day earlier.
Impresit Bakolori Plc remained the most active stock by volume (year-to-date) with 536.9 million units sold for N524.7 million, Geo-Fluids Plc posted 266.4 million units valued at N470.6 million, and Okitipupa Plc recorded 153.6 million units worth N4.9 billion.
Okitipupa Plc ended the day as the most active stock by value (year-to-date) with 153.6 million units worth N4.9 billion, FrieslandCampina Wamco Nigeria Plc traded 21.8 million units valued at N837.9 million, and Impresit Bakolori Plc exchanged 536.9 million units for N524.7 million.
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