UtiliSation of local raw-materials in the manufacturing sector increased marginally in the second half (H2) of 2019, the Manufacturers Association of Nigeria (MAN) has said.

The association, which ascribed this to the closure of the border, noted that it was  impressive, particularly at a time that  local sourcing of raw materials in the sector was down.

MAN made the disclosure in its data analyses for the second half of 2019, which  indicated that local sourcing of raw-materials in the sector increased to 64.0 per cent from 63.7 per cent recorded in the corresponding half of 2018; representing 0.3 percent increase over the period.

Latest raw materials utilisation figure also indicated an increase of seven percentage point when compared with 57 per cent recorded in H1 2019.

In its data, local raw-materials utilization in the manufacturing sector averaged 60.5 per cent in 2019 or 0.02 per centage point fall compared with 60.3 per cent recorded in 2018.

Sectoral analysis showed that utilisation of local raw-materials in textile apparel and footwear stood at 64 percent in H2, 2019, against 57.6 per cent and 54.6 per cent recorded in the corresponding half of 2018, and H1, 2019; thus indicating 6.4 and 9.4 percentage points decline, respectively. Local sourcing of raw-materials averaged 59.3 per cent in 2019 against 60.15 per cent recorded in 2018.

In the Motor Vehicle and Miscellaneous Assembly group, local sourcing of raw-materials increased to 64.7 per cent in H2 2019 against 54.8 per cent recorded in H2 2018, thus indicating a 9.9 percentage point increase. It also increased by 7.2 percentage points when compared with 57.5 per cent of the preceding half.

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In the Motor Vehicle and Miscellaneous Assembly group, local sourcing of raw-materials averaged 61.1 percent in 2019 and 58.8 percent in 2018.

In the Food, Beverage and Tobacco group, local raw-materials utilization stood at 65.1 per cent in the second half of 2019, representing 3.4 percentage point decline from 68.5 per cent recorded in the same half in 2018. It, however, increased by 2.2 percentage points when compared with 62.9 per cent recorded in the first half of 2019. Local sourcing of raw-materials in the group averaged 64 per cent in 2019 and 65.23 per cent in 2018.

MAN also disclosed that the unsold inventory of locally manufactured goods which dropped marginally in the H2 2019, was also attributed to closure of land borders within the ECOWAS regions, as Nigerians purchased more of locally manufactured goods in the period. 

“In the second half of 2019, inventory of unsold finished locally manufactured goods dropped marginally in the sector to N202.16 billion, down by N23.73 billion (10.5 per cent) when compared with N225.89 billion recorded in the corresponding half of 2018.

It,however,increased by N1.9 billion (0.9 percent) when compared with N200.26 billion recorded in the first half of 2019.

Inventory of unsold finished goods in the sector totalled N402.42 billion in 2019 and N375.42 billion in 2018.”