Industrial zones in 10 states of the federation recorded impressive performance and showed strong growth potential in the first quarter of the year, according to data from the Manufacturers Association of Nigeria.
The states were listed as Oyo, Ondo, Osun, Ekiti, Rivers, Kwara, Kogi, Lagos, Ogun and Kano.
The zones that recorded above average performance were: Oyo, Ondo, Osun, and Ekiti that recorded 80.1 points; Rivers scored 72 points; Kwara and Kogi scored 69.9 points, while Ikeja had 53.8 points, Ogun earned 53.5 points and Kano got 53.3 points.
Kaduna fell below the 10 states with 49.9 points.
Others were: Edo/Delta zone that recorded 46.7 points, Apapa zone scored 40 points, Bauchi/Benue/Plateau had 39.8 points, Abuja gained 37.5 points, Imo had 35.7 points and Enugu/Anambra got 35 points.
According to the report, the zones in the second category all fell below the minimum benchmark for good performance.
Commenting on the performance of the sectors, the President, Manufacturers Association of Nigeria, Mr Mansur Ahmed, said, “It is important that the branches that fell below the 50 points standard should be given special focus by first diagnosing the peculiarity of their challenges and proffering solutions to address observed challenges with dispatch.”
Data from the National Bureau of Statistics showed that the overall performance of the manufacturing sector had witnessed an improvement since it recorded a minus in 2017 following the 2016 recession.
In the fourth quarter of 2018, for instance, nominal Gross Domestic Product growth for the manufacturing sector was put at 33.57 per cent, which is 24.37 per cent points higher than the rate recorded in the corresponding period of 2017 (9.20 per cent) but only 0.84 per cent points higher than the preceding quarter’s 32.73 per cent.
Quarter-on-quarter growth of the sector stood at 6.62 per cent, while annual growth was 24.00 per cent in 2018.
The contribution of manufacturing to nominal GDP in Q4 2018 was 10.11, NBS stated, adding that this was higher than its contribution in the corresponding period of 2017 (8.53 per cent) and Q3 2018 (10.01 per cent).
For 2018, the sector contributed 9.75 per cent to total nominal GDP, higher than its contribution, of 8.83 per cent in 2017.
The real GDP growth in the Manufacturing sector was recorded at 2.35 per cent in Q4 2018, which was higher than the 0.14 per cent recorded in the same quarter of 2017 and 1.92 per cent recorded in the preceding quarter.
“On a quarter-on-quarter basis, the sector’s growth rate stood at 5.46 per cent, while the annual growth rate was 2.09 per cent in 2018,” the statistics bureau stated.
It added, the annual growth rate was a significant improvement over the previous year’s growth rate of –0.21 per cent. The sector’s contribution to real GDP in Q4 2018 did not change from its 2017 share (8.86 per cent) and this was also reflected in the annual contribution, which rose only slightly from 9.18 per cent in 2017 to 9.20 per cent in 2018.”