Business
Manufacturing Sector’s Output Drops By N78bn – NBS
The manufacturing sector recorded a decline of about N77.92bn in output in the first quarter of this year, figures obtained from the National Bureau of Statistics have revealed.
An analysis of the Gross Domestic Product report prepared by the NBS revealed that the sector recorded a total output of N1.69tn as of the end of the fourth quarter of 2017.
However, the level of productivity of the sector dropped by N77.92 billion from the fourth quarter figure of N1.68tn to N1.61tn.
The sector had been badly hit by the harsh operating environment which took its toll on the profit margins of many companies operating in that segment of the economy.
The report said there were 13 sub-sectors that made up the manufacturing sector.
Out of the 13 sub-sectors, only four recorded an increase in economic performance between December and March this year, while nine sub-sectors recorded a decrease in productivity.
The four sub-sectors that recorded increase in economic performance are cement from N145.97 billion in December to N152.41billion; wood and woods products from N51.59bn to N53.21bn; non-metallic products from N59.34bn to N60.43bn; and motor vehicle assembly from N7.14bn to N8.69bn.
The nine sectors that recorded decline in productivity were oil refining from N40.03 billion to N14.67bn; food, beverage and tobacco from N387.98bn to N359.51bn; paper products from N14.13bn to N13.35bn; chemical and pharmaceutical products from N40.34bn to N37.07bn.
The rest are plastic and rubber products from N58.86bn to N58.17bn; electrical and electronics from N1.3bn to N930m; iron and steel from N46.19bn to N40.71bn and other manufacturing from N78.06bn to N72.61bn.
The decline in productivity for the manufacturing sector is not in line with the objectives of government for the sector as contained in the Economic Recovery and Growth Plan.
The government in its ERGP said that it would pursue manufacturing promotion policies that would enable the sector to record an average annual growth rate of 8.48 per cent between 2018 and 2020.
This is expected to rise from -5.8 per cent in 2017 to 10.6 per cent by 2020.
The ERGP was expected to build on the Nigeria Industrial Revolution Plan, to address the key challenges in manufacturing.
Some of these challenges are limited access to credit and financial services, poor infrastructure and unreliable power supply that forces businesses to rely on generators, thus increasing their input costs and reducing their overall competitiveness and profitability.
Speaking on the development, the immediate past Director General, Abuja Chamber of Commerce and Industry, Dr Chijioke Ekechukwu, said that the government needed to step up its diversification agenda with credit policy for manufacturers.
He said while the government had been pursuing the economic diversification since the inception of the current administration, the results had not been too impressive based on recent GDP report released by the NBS.
Apart from agriculture, particularly crop production, he said oil was still the leader in terms of income to Nigeria.
To stimulate the economy, Ekechukwu said there was the need for more reforms to further reduce the cost of doing business and interest rate.
Ekechukwu said, “The country came out of recession as a result of improved production capacity and improved international oil prices.
“These two major reasons are actually out of the control of the government and so achieving that feat cannot be said to be a better plus because if that situation had not happened, it is possible that we won’t have been out of recession.
“In the area of growing the non-oil sector, we have yet to make any significant effort that could take the country to the path of sustainable growth.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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