The December 2018 edition of the Purchasing Managers Index report published by the Manufacturers’ Association of Nigeria (MAN) has revealed that textile apparel and footwear came tops on improvement in production.
The report also showed that despite government’s efforts to tackle smuggling and counterfeiting, the two factors have slowed down the production of electronics and electrical products. According to the report, the Electrical and Electronics sub-sectoral group was the only group to suffer a decrease in its basis point out of 10 groups that were considered in the report.
The one-page report released by the association revealed that nine other groups — food, beverage and tobacco, 6Ps, Motor Vehicle and Miscellaneous Assembly, Wood and Wood products, domestic/industrial plastic and rubber, textile apparel and footwear, chemical and pharmaceutical, non-metallic products, basic metal, iron and steel — showed marked improvements in their basis points, with Textile Apparel and Footwear Sectoral Group (TAFSG) registering the highest improvement with a basis point of 13.6.
This improvement comes as a result of improved fiscal support, increased patronage in Nigeria, financial grants for cotton farmers, and the concessional gas pricing mechanism which was recently approved.
Surprisingly, however, the Motor Vehicle and Misc. Assembly (MVMAG) posted an increase in basis point, despite an unfriendly market for locally assembled automobiles and flagrant disregard for the Automotive Policy by portfolio investors which aids importation of automobiles and vehicle parts.
While lamenting the various challenges the manufacturing sector faces, MAN stated that generally, the manufacturing sector showed relative improvement from last month’s report in the face of increased government support for local manufacturers, a slightly better environment and government’s economic policies aimed at stabilizing the economy.