The Manufacturing sector contracted for the second time in April, according to figures obtained from the Central Bank of Nigeria.
Reports released by the CBN said, the Deputy Governor, Financial Systems Stability Directorate, CBN, Aishah Ahmad, stated that, “Continued interventions especially in growth enhancing sectors is, thus, critical to sustain momentum in economic activity and stimulate aggregate demand, especially in view of the manufacturing purchasing manager’s index which contracted for the second consecutive month at 48.9 index points in April 2022 from 49.10 index points in the previous month,” she said.
A member of the MPC, Robert Asogwa, said available high-frequency indicators including the manufacturing Purchasing Manager Index and the MAN CEO confidence index suggests that 2022 quarter two growth may fall below that of quarter one.
He said, “For instance, the manufacturing PMI stood at 48.9 index points in April 2022, lower than the 49.10 points recorded in March 2022, marking two months of consecutive decline, below the accepted 50 index points threshold. “The non-manufacturing PMI for April looks better at 49.5 index points, compared with 48.10 index points in March 2022.”
An MPC member, Kingsley Obiora, said the sub-sectors that recorded significant growth during the period included rail transport and pipelines, air transport, metal ores, financial institutions and telecommunication and information services by 124.5, 50.68, 30.76, 25.43 and 14.50 per cent, respectively.
However, he added, oil refining, crude petroleum and natural gas, road transport, quarrying and other minerals all contracted by 44.26, 26.04, 24.63, and 13.72 per cent, respectively.
He said, “The contraction in the oil sector amid rising oil prices was due to pipeline vandalism and oil theft, with adverse consequences on Federal Government revenues, accretion to external reserves and exchange rates.
“Also, the manufacturing purchasing manager index contracted for the second consecutive month at 48.9 index points in April 2022, compared with 49.10 index points in March 2022.
“It was driven by a decrease in production, employment levels in manufacturing, and supplier delivery. Overall, the modest recovery was driven, in part, by the continued intervention programmes of the Central Bank of Nigeria.”