Manufacturing records 22% growth as GDP contribution rises to 9%

by | July 21, 2014 12:27 am

The new Gross Domestic Product (GDP) series released recently by the National Bureau of Statistics (NBS) has shown that the manufacturing sector recorded substantial growth of 22 percent in 2013. This compares positively with the 14 percent growth recorded by year-end 2012.

The positive growth rate is accompanied by a rise of the GDP contribution from 6.81 percent earlier reported in April to 9 percent. This means the manufacturing sector returns $45.9 billion (N7.67trn) to the new series.

The major contributor to the strong growth is the food, beverage and tobacco sector, which accounted for half of the sector. Other key sectors, which made substantial contributions to manufacturing, include cement, chemical and pharmaceutical sub-sectors.

“We believe Nigeria’s large population of upwardly mobile consumers, particularly in the South West, coupled with investments in power, implies the strong growth of manufacturers, including food producers and breweries, is sustainable,’’ said Renaissance Capital, in its recent report, led by David Nangle.

Razia Khan, head of African Research, Standard Chartered Bank, attributed this to a recent surge in oil refining and a sizeable pick up in cement manufacturing, adding that growth in the chemical and pharmaceutical products sub-sector had remained robust.

Odinaka Anudu