The manufacturing sector PMI declined from 58.3 points to 51.1 points between February and March 20201. The slowdown was triggered by reduced growth in 7 subsectors including electrical equipment, chemical and pharmaceutical products, primary metals and non-metallic mineral products. Similarly, the non-manufacturing PMI index declined to 49.2 percent, falling below the 50 percent threshold for the first time in over 2 years1. The overall contraction is due to the depression in global economic activity which has led to a reduction in new orders, inventory and consequently employment levels across the manufacturing and non-manufacturing sectors. In the coming months, the reduced activity across both sectors is expected to continue as a result of the decline in global demand for exports and the reduction in local consumption. In the meantime, some manufacturers can switch to producing essential commodities that are required to tackle the pandemic. In addition, the cash transfers by the government should be distributed to manufacturing and non-manufacturing workers that would be laid off or furloughed as a result of the pandemic.
April 20, 2020
Nigeria Economic Update (Issue 13)
Related
Gross Federally Collected Revenue
Gross Federally Collected Revenue: Both oil and non-oil components of gross federal revenue fell below N40 billion in 2016, after recording a peak of N90 billion in 2013. The decline was most prominen
Nigeria Economic Update (Issue 30)
Power sector analysis shows an increase in
power generated by 3.01 percent from 2903.5mw to 2991.8mw between July 1, 2016
and July 8, 2016, with a peak of 3260.8mw on July 5, 2016. This is
however, still below the highest (5074.7mw) recorded in February, 2016. The
increase reflects improved use of hydro (water) for power generation.
The easing out of gas constraint occasioned by recent pipeline repairs have
also contributed to the increase in power generation. Improvements in power
generation would be sustained if hydro measures are complemented with
fast-tracked repairs on damaged gas channels and intensified efforts at
tackling pipeline sabotage.