By Industrial Digest
The Lagos Chamber of Commerce & Industry (LCCI), today, blamed the continuous decline in manufacturing output in Nigeria on both global and local forces.
“Despite being one of the biggest beneficiaries of CBN’s loan-to-deposit policy, manufacturing sector contracted by 8.78% in Q2-2020 compared with a marginal 0.43% growth in the previous sector, ” said Dr. Muda Yusuf, the Director- General of LCCI.
“In our view, we believe the weakness of manufacturing sector was due to global and domestic supply chain disruptions, foreign exchange illiquidity, weak consumer spending and high operating costs.
“We note with concerns that the manufacturing sector has been struggling with growth before the outbreak of the novel coronavirus,
“”We note that of the 13 sub-sectors in the manufacturing space, only two sectors – chemical & pharmaceutical products and motor vehicles & assembly reported positive growths, while the other 11 sub-sectors had negative growth. “
Regarding the Agricultural sector, he noted that Agriculture: Crop production, which accounts for over 85% of agricultural output, recorded moderation in growth from 2.38% in Q1-2020 to 1.44% in Q2-2020.
“The slowdown was driven by disruption to the food supply chains, difficulties experienced by farmers in conveying their products inter-state and insecurity in food producing areas.”