The Lagos Chamber of Commerce and Industry has expressed concern about the large inflow of loans and bonds into the industrial sector in the first half of the year.
This, the chamber said, indicates the difficulties the manufacturing sector is facing, the need to fulfill immediate responsibilities, and the halting of commercial activity.
The National Bureau of Statistics reported that the manufacturing sector’s capital inflow increased by 88.16% in the first half of 2023, from $457.67 million to $861.16 million.
For instance, the announcement noted that Tolaram and Dangote Group each raised N300 billion ($38 million) in bonds.
The Director-General of the LCCI, Dr. Chinyere Almona, “The considerable increase reflects a low base of capital imported in the prior year and investors’ reaction to the two crucial changes, the removal of fuel subsidies and the harmonization of exchange rates, in the first month of the new administration.
“The manufacturing industry is projected to be impacted by the “Inflow in H1 2023, particularly firms mitigating against current challenges, meeting short-term obligations, and falling consumer demand.
“Despite the challenging operating climate, the industry continues to show some resilience, growing by 1.61 percent and 2.20 percent in the first and second quarters of 2023, respectively.”
