These are not be the best of times for manufacturers in Nigeria as they face high operating costs, scarcity of foreign exchange, low capacity utilisation and a drastic drop in profit margins. Latest figures from the National Bureau of Statistics at the manufacturing sector was feeling the negative impact of high operating costs as it recorded 2.98 per cent (year-on-year) in nominal Gross
Domestic Product growth rate in the first quarter of 2016. This was 4.23 percentage points lower than the growth recorded in the Q1 2015 and 9.91 percentage points lower than the growth in the fourth quarter of 2015 as a result of slower growth in 10 of 13 subsections of the manufacturing sector.

On a quarter-on-quarter basis, the sector slowed by 11.92 per cent. The contribution of manufacturing to nominal GDP was 9.33 per cent in the Q1 2016, lower than the 10.17 per cent recorded in the corresponding period of 2015, yet marginally 9.09 per cent in the Q4 2015. In the Q1 2016, the real GDP growth of the manufacturing sector slowed by seven per cent, 6.30 percentage points lower than the growth recorded in the Q1 2015 with oil refining, cement, food, beverage and tobacco and electricity activities weighing on growth.

Only recently, the Abuja Chamber of Commerce and Industry said the inability of manufacturers to secure foreign exchange for the importation of basic raw
materials for production had led to loss of job by over 50,000 workers. The Manufacturers Association of Nigeria also said about 10 manufacturing companies had written to the association indicating their plans to shut down. It said if they shut down operations, at least 2,000 people working in the companies would be thrown into the already overcrowded labour market. Experts said the infrastructural decadence affecting manufacturing activities over the years was compounded by the Central Bank of Nigeria’s directive excluding 41 items from accessing official foreign
exchange in Nigeria. Analysts said there was a need for the government and stakeholders in the sector to come up with innovative ways to enable industrialists to remain in business.

The President, MAN, Dr. Frank Jacobs, for instance, called on the Federal Government to consider what he described as “resource-based industrialisation” to boost
the utilisation of local raw materials for production. The resource-based industrialisation, according to him, involves the utilisation of the abundant natural resources in producing the products that the country
needs. This, he noted, was a more sustainable and lasting form of industrialisation when compared with the current import-dependent industrialisation. He said, “We are all aware that one of the greatest challenges manufacturers are facing currently is scarcity of raw materials for production, as a result of the prevailing
forex scarcity. “The resource-based industrialisation
policy involves the utilisation of the abundant natural resources in producing.

The changes we are canvassing will, no doubt, be at a huge cost as manufacturers may have to retool existing technologies and production processes. “Government, therefore, has a lot to do to make this new orientation of resource-based industrialisation successful. Government should create attractive incentives for investors who will engage in the processing of the abundant agricultural and minerals resources from
primary produce to secondary or intermediate products.
“This will go a long way in attracting potential and current manufacturers into the use of local raw material inputs, which will then be readily available locally.”

While admitting that the sector was faced with scarcity of foreign exchange, Jacobs said the association had had regular meetings with the Presidency and the CBN
leadership on the need to make forex more accessible to industrialists. He said the association would continue to press for the exclusion of some of the items that restriction was placed on for foreign exchange. He said with economic recession facing the sector, there was a need for the association to review its strategies and
face the challenges in order to survive. He said, “It is no time to be despondent. We will bond together and face the challenge with our time-tested skills and resolve. We need to review our processes and re-strategise to weather the storm, knowing that after the storm, comes
sunshine.”

Also speaking, the Officer in Charge, United Nation Industrial Development Organisation, Dr. Chuma Ezedinma, said while the country had enough potential to industrialise, there was a need to address the structural challenges militating against the progress of manufacturers.

http://punchng.com/manufacturers-worry-profit-margin-shrinks/

God help us.

Wholesalers and retailers are also complaining of terrible profit margin, we the consumers are complaing of over inflation of prices. Everybody seems to be on the losing side apart from those in power

dominique:
Wholesalers and retailers are also complaining of terrible profit margin, we the consumers are complaing of over inflation of prices. Everybody seems to be on the losing side apart from those in power

Except their noise makers who think with their 1st class;they have better graps of Economics.. Country hard oh,God will see us through

Things fall apart.......

Huh!
Pls what must l do to be saved

Op next time you want to copy paste, you should at least rearrange now. Its not everybody that can read less paragraph posts

God help us

change dole

Die Buhari!

Nawa o

Why worry

Help Grow our economy. Buy Nigerian made goods to boost the naira.

See why


https://www.youtube.com/watch?v=3_1ZDgYfj6g

The profit margin is so thin now that you wonder if it makes sense to keep producing. The exchange rate of the dollar has made the raw materials so expensive. It's even worse if you have a bank loan. It's really terrible. Very terrible.

Buhari has not disappointed yet , according to obasanjo

sCun:
Die Buhari!

Die your father!

It may get worse. God help us.

Of what interests is this news to lalasticala that he had to double the thread on FP?

make i park here

Hard times is here.

If only it was for those who voted in this current FG administration I'd be over happy but rather it's affecting everyone.
Smh

[center]*Modified*[/center]
UNIUYO screening starts today

wish me goodluck!!

All these things are normal to buhari ,it is only the gullible Nigerians that voted for him and placed their hopes in him that are worried. As long as there are people walking on the streets daily buhari believes everything is ok

the only solution to this is for everyone to declare a dry fasting on the head of buhari the cursed animal so that God that saved us from abacha will do it again

cc

omenka

i blame d Dog named Buhari

ANIEXTY:
UNIUYO screening starts today

wish me goodluck!!

i wish u success bro, my younger brother is also taking part in d screening

Everybody is complaining. I am tired of complaining. Na just to take things d way we see am. Complaining won't solve anything

A man woke up and shouted 'Holy Ghost Fire' ..Wife: What is it, was it a lion chasing you? ... Man: That would have been better. Wife: what is it then? ... Man: I nearly voted Bhuari again in my dream. Wife: Blood of Jesus! honey,lets pray.

ModsAreMad:


Seriously........ It wouldn't have been better with any one else......

The worst form of ignorance is denial of self worth.

A Chinese proverb comes to mind:

He who knows not, and knows not that he knows not, is a fool...shun him.

He who knows not, and knows that he knows not, is willing...teach him.

He who knows, and knows not that he knows, is asleep...awaken him.

He who knows, and knows that he knows, is wise...follow him.

P.S. I'm only repeating a quote.

P.P.S. I'm including the Prayer for Nigeria in Distress and enjoin everyone to inculde same in their daily prayers. I believe we are already in desperate times for which the prayers address. If we could as a nation experience Divine intervention in 1998, then we can still overcome.

PRAYER FOR NIGERIA IN DISTRESS

All powerful and merciful Father
You are a God of justice love and peace,
You rule over all the nations of the earth,
Power and might are in your hands and no one can withstand you,
We present our country Nigeria before you,
We praise and thank you for you are the source of all we have and are,
We are sorry for all the sins we have committed and for the good deeds we have failed to do.
In your loving forgiveness keep us safe from the punishment we deserve.
Lord we are weighed down not only by uncertainties but also by moral, economic and political problems. Listen to the cries of Your people who confidently turn to You.
God of infinite goodness, our strength in adversity, our health in weakness, our comfort in sorrow
Be merciful to us your people; spare this nation Nigeria from chaos, anarchy and doom.
Bless us with your kingdom of justice, love and peace.
We ask this through Jesus Christ our Lord. Amen.

Hmmm