The Manufacturers Association of Nigeria (MAN) has revealed a stark decline in the manufacturing sector’s production value due to a challenging economic environment.

According to MAN’s Apapa branch Chairman, Frank Onyebu, the value of manufacturing production plummeted from N7.39 trillion in 2021 to N6.67 trillion in 2022, marking a substantial decrease of N720 billion.

The year 2022 was characterized by an unfavourable operational landscape, marked by factors like soaring inflation, exorbitant interest rates, multiple taxation, elevated energy costs, forex liquidity issues, and scarcity of raw materials.

These challenges were compounded by supply shortages, escalating material prices, and difficulties in hiring skilled staff, all of which hindered the growth of the manufacturing sector.

Onyebu highlighted that the manufacturing sector’s factory output dipped to N2.68 trillion in the second half of 2022, down from N3.73 trillion in the same period of 2021, reflecting a significant 28% decline.

He also noted that the absence of new capital projects by the government during the election-focused period further impacted manufacturing production in the latter half of 2022.

The harsh operating conditions prompted some manufacturers to exit Nigeria for neighbouring countries, with more contemplating a similar move.