Manufacturing sector contributed 8.59% to Nigeria’s GDP in Q3
The manufacturing sector has contributed about 8.59% to the country’s Gross Domestic Product (GDP) in the third quarter of 2016 which is lower than the 9.67% recorded in the corresponding period of 2015.
According to the Nigeria GDP report by National Bureau of Statistics (NBS) the third quarter was quite lower than what was obtainable in the second quarter which stood at 8.95%.
The report shows that the manufacturing sector has about thirteen sub-sectors which include: 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.
The NBS noted that the nominal GDP growth of the manufacturing sector in the third Quarter of 2016 was recorded at –2.93% (year-on-year), 7.73% points lower than the 4.80% recorded in the corresponding period of 2015.
The result is partly due to the continued fall in the exchange rate, which makes imported inputs more expensive, thereby increasing business costs. This is greatly as a result of continued fall in naira to dollar rate which translates to much higher cost of business operations. Growth also reflected a drop from the second quarter of 2016 by 1.91% which was recorded at –1.02%. On a Quarter-on-Quarter basis, the sector grew by 8.49%.
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