The manufacturing industry in Nigeria, Manufacturers Association of Nigeria, experienced a fall in direct employment creation of 20.8 per cent in the second half of 2022.
According to MAN’s most recent half-yearly evaluation of the economy, accessed by Business Day, manufacturing employment decreased to 6,741 down in the second half of 2022 from 8,508 and 9559 recorded in the equivalent half of 2021 and H1 2022, respectively.
It states, “The decline in the number of jobs created in the sector during the period corroborates the poor operating business environment that was perverse with high energy cost, exorbitant cost of borrowing, high inflation, low sales due to limited cash and many more.”
Considering the full-year analysis, the total number of jobs created now stands at 16,300 in 2022 from 16,110 in 2021 and 8,692 recorded in 2020.
“Based on the survey cumulative manufacturing employment since 2013, was estimated at 1.7 million at the end of 2022,” it added.
According to the Manufacturers CEO’s Confidence Index, in its entirety, the current employment situation decreased from 51.9 in the third quarter of 2017 to 51.3 in the fourth.
“Employment decisions by manufacturers are so difficult due to the unpredictability and difficulty in macroeconomic movement,” it said.
Internal crises are roiling Africa’s most populous country, which has an all-time high jobless rate of 33.3 per cent and a rate of underemployment of 22.8 per cent.
According to an economist based in Lagos, Damilola Adewale, the manufacturing sector is one of the main employers in the economy, and the fall in employment levels is not encouraging for the economy as a whole.
“The high cost of diesel and foreign exchange crisis is affecting the operations of the sector, thereby weakening its job-creating capacity,” he added.
According to the MAN report, factory output decreased by N1.05 trillion or 28 per cent over the period, falling to N2.68 trillion in H2 from N3.73 trillion in the same half of 2021.
In addition, the report said the output value dropped by N1.31 trillion, or 32 per cent, from the N3.99 trillion reported in the first half. In 2022, the value of manufacturing production was N6.67 trillion, compared to N7.39 trillion in 2021.
“Manufacturing production was severely affected in H2 by the absence of implementation of new capital projects by the government as they focused on the election,” MAN said.
