The total value of goods manufactured in Nigeria in the first half of 2014 dropped by N271billion as a result of epileptic power supply and insecurity, especially in the North-eastern part of the country.
The aforementioned hitches took a toll on the operations on local manufacturers, as their production value plummeted from N353.20 billion recorded in the first half of 2013 to N270.85 billion in the first half of 2014.
Based on latest data from the Manufacturers Association of Nigeria (MAN), the decline represents a 44 per cent reduction from N483.52 billion recorded in the second half of 2013.
According to MAN, the situation did not solely rise from the dismal activities in the nation’s economy, but also as a reaction to some hitches posed by some indices which affected manufacturers within the period under review.
MAN stated: “This could be attributed to power outages, which have continued to produce greater effect on Small and Medium-scale Enterprises (SMEs) and the internal strife, linked to religious uprising in the northern parts of the country also contributed to lower production value, as markets were curtailed due to sales and movement challenges in some parts of the country.”
In addition, some analysts have said that asides insecurity and power that pose major challenges to local manufacturing output, duel over grading and slower consumer response to products are some other possible causes of this decline.