Nigeria's manufacturing records $623mln expenditure on alternative energy sources, 17,949 employees exit in 2024 —Report
The nation's manufacturing sector was not without its fair share of challenges that faced the different sectors of the economy, in 2024, as a total sum of N1.11trilliion was spent by operators in the sector on alternative energy sources; and with 17949 employees exiting the sector, during the period.
This, according to a new report, tagged: 'MAN Economic Review Half Year 2024', released by the Manufacturers' Association of Nigeria (MAN), indicates a 42.3 percent increase from N781.68 billion spent for same purpose, in 2023.
The result, on a half-on-half basis, also revealed that manufacturers spent of N404.80 billion in H1 2024, increased by 75.0 percent to N708.07 billion in H2 2024.
According to the report, the Food, Beverage & Tobacco sector recorded N229.41 billion in alternative energy spending, up from N182.76 billion in 2023, while Chemical & Pharmaceutical energy costs doubled to N208.68 billion.
The Non-Metallic Mineral Products sector's energy costs increased by 33.7 percent to N118.49 billion, and the Textile, Apparel & Footwear industry saw a fourfold increase, reaching N26.45 billion in 2024, compared to N6.97 billion in 2023.
The report noted that while there was an improvement in electricity supply situation for industries in 2024, with average daily supply increasing to 13.3 hours per day, up from 10.6 hours in 2023; electricity tariffs, however, surged by over 200 percent for Band A consumers, thereby increasing manufacturing costs, significantly, in the year under review.
'While power availability improved, many manufacturers still faced frequent outages, and costs as the country witnessed 12 national grid collapses and this remained a major concern.
In response to unreliable grid power and increases in prices of Diesel and PMS,' the report stated.
The number of employees leaving manufacturing companies also increased from 17,364 in 2023 to 17,949 in 2024, representing ongoing labour mobility, due to economic uncertainties, skill migration, and company restructuring.
A total of 16,820 new jobs were created in 2024, a situation the report described as 'nearly unchanged' from the 16,799 created in 2023.
On investment in the sector under review, the sector was said to have witnessed a decline in manufacturing investment by 35.3 percent year-on-year to N658.81 billion in 2024, reflecting economic uncertainty and reduced expansion plans.
Perhaps a glimmer of hope was shown by the sector performance in H2 2024, regarding investments in the sector, as it witnessed a 19.4 percent increase compared to H1 2024, as manufacturers cautiously resumed capital expenditures.
'In nominal terms, total investment declined by 11.3 percent to N2.85 trillion, with Land & Buildings and Furniture & Equipment seeing the most significant declines,' the report stated.
Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (Syndigate.info).
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