“The Textile Apparel & Footwear sectoral Group (TAFSG) recorded the most significant improvement with a positive change of 13.9 points in the monthly Purchasing Managers Index (PMI) of the Central Bank of Nigeria.”
Manufacturers Asaociation of. Nigeria, MAN noted in its review of CBN PMI for December 2018, said “The performance of this Group in recent times could be attributed to a number of factors, which include fiscal support, improved local patronage, and incentives for cotton growers, increasing access to development finance windows, and the recent approved concessional gas pricing mechanism.”
MAN sad that “All of these, cumulatively aided productivity of TAFSG.
“In performance ranking, the TAFSG was followed closely by Motor Vehicle & Misc. Assembly Group (MVMAG) with 12.5 points increment.
“This is however surprising because in real terms, the MVMAG was reported to have recorded increase in basis points without a virile auto component allied industry, with the prevailing low patronage of locally assembled automobiles and the obvious abuse of some provisions of the Automotive Policy by some portfolio investors, which indirectly aids importation of fully assembled automobiles to the detriment of locally assembled vehicles.”
Sub-Sectoral Groups at a Glance
“The report revealed improved performances across the sectorial groups save for Electrical & Electronics sectoral group.
Although the performance of Electrical & Electronics Sectoral Group recorded above 50 points benchmark, its basis point contracted by 6.7 points owing mainly to the menace of smuggling and counterfeiting that has continually plagued its performance. “Obviously, Government needs to support operators in the Group with policies that will discourage unbridled inflow of used and smuggled Electrical & Electronics
products to the country.
“The 6Ps sectoral Group also recorded an increase of 9.1 points even though it is still
high import dependent for vital raw materials.
“Notwithstanding, the manufacturing sector is still faced with myriad of challenges, ranging from infrastructure deficit, multiplicity of taxes, policy contradictions, exorbitant cost of clearing and transporting raw materials
from the ports to factories, poor access to Lagos Ports, weak port infrastructure to increasing incidences of smuggling and
“These challenges have jointly constrained the manufacturing sector from attaining its full growth potentials.
“It is however worthy of note, that for two consecutive months now, no sectoral group recorded below 50 points benchmark
which shows a reasonable level of improvement in the manufacturing sector performance and a pointer to a good outing in the last quarter of 2018.”