2 weeks Ago By James Agberebi
TWO of Nigeria’s key sectors, manufacturing and trade, have continued to experience a staggering decline, recording negative growth in quarter three (Q3). According to the National Bureau of Statistics (NBS), the manufacturing sector suffered an over 90 per cent decline in Q3, as nominal GDP growth stood at just 3.62 per cent (year-on-year) from 36.
59 per cent recorded in Q3. Quarter-on-quarter, growth of the sector was 31.67 per cent during the quarter.
The real sector has continued to bleed with a significant number of multinationals and local players pulling out. Just last week, the chemical and non-metallic products sector, two of the 13 subsectors of the manufacturing sector, expressed worry that 28 member companies, with many others to follow suit, have folded up or relocated abroad. They attributed the decision to the harsh economic climate that has severely impacted operations.
Consequently, the subsector’s contribution to nominal GDP in the quarter under review fell to 14.3 per cent, lower than the figure recorded in the corresponding period of 2023 at 16.18 per cent, just as the growth rate of the sector on a quarter-on-quarter basis stood at 6.
74 per cent. The real contribution of manufacturing to GDP in Q3 of 2024 was 8.21 per cent, lower than the 8.
42 per cent recorded in Q3 2023 and lower than the 8.46 per cent recorded in Q2 202 Similarly, the nominal year-on-year growth rate of trade stood at 34.27 per cent, 11.
62 per cent lower than the previous quarter’s growth rate of 45.89 per cent. The quarter-on-quarter growth rate was -7.
31 per cent. Trade’s contribution to nominal GDP in Q3 was 12.67 per cent, also lower than the preceding quarter which recorded 15.
95 per cent. The report showed further that the sector’s year-on-year growth stood at 0.65 per cent in Q3, 0.
88 per cent lower than the rate recorded in the previous year at 1.53 per cent and 0.05 per cent lower than in the preceding quarter at 0.
7 per cent growth rate. Quarter-on-quarter growth stood at -0.79 per cent, lower than the quarter-on-quarter growth recorded in Q2 at 4.
42 per cent. Trade’s contribution to GDP was 14.78 per cent, lower than the 15.
19 per cent in the previous year and lower than the 16.39 per cent recorded in Q2..
