Analysis of the Q4 2021 Gross Domestic Product report of the National Bureau of Statistics has shown that the manufacturing sector bounced back to growth with N6.5 trillion in 2021, representing 3.35 per cent growth from N6.29 trillion in 2020.
The sector had recorded a contraction of 2.75 per cent in 2020 from N6.47 trillion GDP in 2019.
In spite of the numerous socio-economic challenges bedeviling the country, NBS data showed that the manufacturing sector real GDP closed the year positive, rising to 3.35 percent year-on-year (y/y) in 2021, up by 6.10 points when compared with the contraction of -2.75 percent y/y in 2020 and 2.58 points above 0.77 percent growth recorded in 2019.
The three-year growth trend in the sector from 2019 was disrupted by the impact of the COVID-19 pandemic that negatively affected manufacturing activities in the country, with manufacturing GDP plummeting to a low of -8.78% in the second quarter of 2020 (Q2 2020) due to plunging demand for manufactured goods on the back of movement restrictions.
Further analysis of NBS data showed that the manufacturing sector contributed N6.5 trillion the nation’s real GDP in 2021, up from N6.29 trillion in 2020 and N6.47 trillion recorded in 2019.
The manufacturing sector, as captured by NBS, comprises of thirteen activities: Oil Refining; Cement; Food, Beverages and Tobacco; Textile, Apparel, and Footwear; Wood and Wood products; Pulp Paper and Paper products; Chemical and Pharmaceutical products; Non-metallic Products, Plastic and Rubber products; Electrical and Electronic; Basic Metal and Iron and Steel; Motor Vehicles and Assembly; and Other Manufacturing.
Further analysis also showed that major contributors to the sector’s growth are Chemical and Pharmaceuticals; Cement; and Food, Beverage and Tobacco; sub sectors were the major contributors to the sector’s growth, while the Oil Refining sub sector continued to drag performance of the sector as consolidated refining capacity remain at near zero levels.
Analysts attributed the growth of the manufacturing sector especially since the start of 2021, to the low base in the previous year, and also the boom in local demand and the continued interventions given to critical sectors of the economy by the monetary authority.