The Manufacturing Association of Nigeria said the negative growth of the sector’s Gross Domestic Product may discourage potential investors from putting their money in the manufacturing sector.
While issuing its position on the current GDP rate in the country, the association said the trend was sending a strong unfavorable signal to potential investors in the sector.
A statement titled, “Position of the Manufacturers Association of Nigeria on the GDP report for the third quarter of 2022 as released by National Bureau of Statistics,” said the current GDP rate would usher in negative investors’ sentiments and pessimism against the provision of critical raw materials, technology and technical know-how required to promote the industry.
In the recent report by the NBS, the manufacturing sector accounted for 8.59 per cent of real GDP in the third quarter of 2022.
This was marginally lower than the 8.96 per cent recorded in the same quarter of 2021 and 8.6 percent reported in the preceding quarter of 2022.
The statement said, “The GDP growth slowdown will most likely result in a higher unemployment rate. Coupled with a high inflation rate, the economy is likely to face higher misery index that worsens the poverty level and further shifts consumers away from elastic manufactured goods.
“This will eventually result in a drastic reduction of patronage and lower sales turnover.
“The slag in the diversification drive implies further dependence on imported raw material and machinery. Hence, the forex crisis bedeviling the sector is not likely to be resolved anytime soon,” the statement added.
Manufacturers fear that high diesel cost and forex crisis will lead to factory shutdowns and higher unemployment in the country.