The Nigerian manufacturing sector stands at a critical inflexion point, with recent data revealing an alarming 20.95 per cent decline in GDP contribution during the first two quarters of 2024. As a financial sector expert with extensive experience in risk management and business process optimisation, I present an analytical framework addressing this crisis that threatens Nigeria’s industrial future.
One can see that the contribution of the manufacturing sector to GDP dropped from 16.04 per cent (Q4 2023) to 12.68 per cent (Q2 2024). Also, manufacturing production decreased approximately by 80 per cent between Q1 2023 and Q1 2024. Sadly manufacturing companies face up to 84 per cent increase in tax burden despite declining productivity while capacity utilisation in manufacturing facilities has fallen below 50 per cent.
One of the key challenges impacting manufacturing includes foreign exchange volatility….
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