Business
Manufacturing sector records 3,567 job losses in first half of 2023
The Manufacturers Association of Nigeria (MAN) has revealed that a total of 3,567 jobs were lost in the sector in the first six months of 2023.
The group stated this in its ‘Half Yearly Review of the Economy (January – June 2023)’ recently released.
According to the report, for the same period in 2022, 1,709 jobs were lost. This represents an increase of 1,855 in job losses in the sector over one year.
The figure also represents an increase of 805 job losses when compared with the 2708 jobs that were lost in the preceding half of the report that is from July to December 2022.
MAN attributed the increase in job losses to the unfriendly business environment and a slew of hastily implemented policies such as the naira redesign that caused the scarcity of notes in the first quarter of the year.
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“The decline in the number of jobs created in the sector during the period further highlighted the unfriendly business environment resulting from the hasty policies and residual effect of the currency redesign policy that led to naira crunch,”
As per the association’s report, there was a decrease in capacity utilization, dropping to 56.5% compared to the 57% recorded during the same period in 2022. Additionally, the cost of funds for manufacturers increased to 24% from the previous 22% in the latter half of 2022.
“The continuous upward adjustments significantly influence the lending rates offered by commercial banks to industries in the Monetary Policy Rate,” MAN said.
The association recommends that the challenges in the manufacturing sector should be promptly and effectively addressed.
It said, “The sector urgently requires measures to mitigate the adverse effects of these policies and restore its growth trajectory.”